Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 Improving Coordination and Cooperation through Competition
نویسنده
چکیده
We use game theory and experimental economics approaches to analyze the relationships between corporate culture and the persistent performance differences among seemingly similar enterprises. First, we show that competition leads to higher minimum effort levels in the minimum effort coordination game. This implies that, organizations with competitive institutional design are more likely to have better coordination, hence better performance outcome. Furthermore, we show that organizations with better coordination also lead to higher rates of cooperation in the prisoner’s dilemma game. This supports the theory that the high-efficiency culture developed in coordination games act as a focal point for the outcome of subsequent prisoner’s dilemma game. In turn, we argue that these endogenous features of culture developed from coordination and cooperation can help explain the persistent performance differences. JEL classification numbers: C72, C91, C92, D02, D23.
منابع مشابه
Nber Working Paper Series Experimenting with Measurement Error: Techniques with Applications to the Caltech Cohort Study
Measurement error is ubiquitous in experimental work. It leads to imperfect statistical controls, attenuated estimated effects of elicited behaviors, and biased correlations between characteristics. We develop simple statistical techniques for dealing with experimental measurement error. These techniques are applied to data from the Caltech Cohort Study, which conducts repeated incentivized sur...
متن کاملDivision of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 on the Evolutionary Emergency of Optimism
Successful individuals were frequently found to be overly optimistic. These Þnding are puzzling, as one could expect that realists would perform best in the long run. We show, however, that in a large class of strategic interactions of either cooperation or competition, the equilibrium payoffs of optimists may be higher than those of realists. This is because the very fact of being optimistic c...
متن کاملDivision of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 on Incentives and Updating in Agent Based Models
متن کامل