Dynamic coordination via organizational routines
We investigate dynamic coordination among members of a problem-solving team who receive private signals about which of their actions are required for a (static) coordinated solution and who have repeated opportunities to explore different action combinations. In this environment ordinal equilibria, in which agents condition only on how their signals rank their actions and not on signal strength, lead to simple patterns of behavior that have a natural interpretation as routines. These routines partially solve the team's coordination problem by synchronizing the team's search efforts and prove to be resilient to changes in the environment by being ex post equilibria, to agents having only a coarse understanding of other agents' strategies by being fully cursed, and to natural forms of agents' overconfidence. The price of this resilience is that optimal routines are frequently suboptimal equilibria.
|Date of creation:||06 Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (0)30 21231 0
Fax: +49 (0)30 21231 9
Web page: http://www.esmt.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sylvain Chassang, 2010. "Building Routines: Learning, Cooperation, and the Dynamics of Incomplete Relational Contracts," American Economic Review, American Economic Association, vol. 100(1), pages 448-65, March.
- Blume, Andreas & Franco, April Mitchell, 2007. "Decentralized learning from failure," Journal of Economic Theory, Elsevier, vol. 133(1), pages 504-523, March.
- Jacques Cremer & Luis Garicano & Andrea Prat, 2006.
"Language and the Theory of the Firm,"
784828000000000373, UCLA Department of Economics.
- Jehiel, Philippe, 2005.
"Analogy-based expectation equilibrium,"
Journal of Economic Theory,
Elsevier, vol. 123(2), pages 81-104, August.
- Robert S. Gibbons, 2010.
"Inside Organizations: Pricing, Politics, and Path Dependence,"
Levine's Working Paper Archive
661465000000000249, David K. Levine.
- Robert Gibbons, 2010. "Inside Organizations: Pricing, Politics, and Path Dependence," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 337-365, 09.
- Andreas Blume & Paul Heidhues, 2003.
"Private Monitoring in Auctions,"
CIG Working Papers
SP II 2003-14, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- David A. Miller, 2005.
"The dynamic cost of ex post incentive compatibility in repeated games of private information,"
Game Theory and Information
- Andreas Blume & John Duffy & April Mitchell Franco, 2008.
"Decentralized Organizational Learning: An Experimental Investigation,"
382, University of Pittsburgh, Department of Economics, revised May 2009.
- Andreas Blume & John Duffy & April M. Franco, 2009. "Decentralized Organizational Learning: An Experimental Investigation," American Economic Review, American Economic Association, vol. 99(4), pages 1178-1205, September.
- John Duffy & Andreas Blume & April Franco, 2007. "Decentralized Organizational Learning: An Experimental Investigation," Working Papers 310, University of Pittsburgh, Department of Economics, revised Jul 2008.
- Andreas Blume & April Franco, 2002. "Learning from failure," Staff Report 299, Federal Reserve Bank of Minneapolis.
- Andreas Blume & John Duffy, 2004. "Organizational Learning: An Experimental Investigation," 2004 Meeting Papers 617, Society for Economic Dynamics.
- Thomas Wiseman, 2005. "A Partial Folk Theorem for Games with Unknown Payoff Distributions," Econometrica, Econometric Society, vol. 73(2), pages 629-645, 03.
- Banerjee, Abhijit V, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 797-817, August.
- Gossner, Olivier & Vieille, Nicolas, 2003.
"Strategic learning in games with symmetric information,"
Games and Economic Behavior,
Elsevier, vol. 42(1), pages 25-47, January.
- GOSSNER, Olivier & VIEILLE, Nicolas, 1998. "Strategic learning in games with symmetric information," CORE Discussion Papers 1998023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- O. Gossner & N. Vieille, 2000. "Strategic Learning in Games with Symmetric Information," THEMA Working Papers 2000-27, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
When requesting a correction, please mention this item's handle: RePEc:esm:wpaper:esmt-11-10. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ESMT Faculty Publications)
If references are entirely missing, you can add them using this form.