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Efficiency Gains from Team-Based Coordination – Large-Scale Experimental Evidence

  • Francesco Feri

    ()

    (Department of Public Finance, University of Innsbruck)

  • Bernd Irlenbusch

    ()

    (London School of Economics & Political Science - Department of Management; Institute for the Study of Labor (IZA))

  • Matthias Sutter

    ()

    (University of Innsbruck - Department of Public Economics; University of Gothenburg - Department of Economics)

The need for efficient coordination is ubiquitous in organizations and industries. The literature on the determinants of efficient coordination has focused on individual decision making so far. In reality, however, teams often have to coordinate with other teams. We present a series of coordination experiments with a total of 1,101 participants. We find that teams of three subjects each coordinate much more efficiently than individuals. This finding adds one important cornerstone to the recent literature on the conditions for successful coordination. We explain the differences between individuals and teams using the experience weighted attraction learning model.

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Paper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2009_14.

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Date of creation: Apr 2009
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Handle: RePEc:mpg:wpaper:2009_14
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