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American Economic Review: Vol. 100 No. 4 (September 2010)

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

Article Citation

Feri, Francesco, Bernd Irlenbusch, and Matthias Sutter. 2010. "Efficiency Gains from Team-Based Coordination—Large-Scale Experimental Evidence." American Economic Review, 100(4): 1892-1912.

DOI: 10.1257/aer.100.4.1892

Abstract

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. (JEL C71, C91, D23, D83, M54 )

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Authors

Feri, Francesco (U Innsbruck)
Irlenbusch, Bernd (London School of Economics and U Cologne)
Sutter, Matthias (U Innsbruck and U Gothenburg)

JEL Classifications

C71: Cooperative Games
C91: Design of Experiments: Laboratory, Individual
D23: Organizational Behavior; Transaction Costs; Property Rights
D83: Search; Learning; Information and Knowledge; Communication; Belief
M54: Personnel Economics: Labor Management


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