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Let's Talk It Over: Communication and Coordination in Teams

Author

Listed:
  • Dietrichson, Jens

    (VIVE - The Danish Center for Social Science Research)

  • Gudmundsson, Jens

    (University of Copenhagen)

  • Jochem, Torsten

    (Faculty of Economics and Business, University of Amsterdam)

Abstract

Collaboration in teams in which each member's output is critical to the overall success present organizations with difficult coordination problems. We develop a model and run simulations to analyze how costly communication affects team coordination and output efficiency. We show that absent any organizational routines to structure team communication the least efficient outcome is the most frequent organizational output. We then derive formal conditions and simulate efficiency gains for several communication routines that improve team coordination and organizational efficiency. Our model and simulation results match a broad range of findings from the experimental and organizational literature, help explain why collaborations involving several organizational units often fail, and suggest new tests for promising communication routines.

Suggested Citation

  • Dietrichson, Jens & Gudmundsson, Jens & Jochem, Torsten, 2014. "Let's Talk It Over: Communication and Coordination in Teams," Working Papers 2014:2, Lund University, Department of Economics, revised 18 Apr 2018.
    • Handle: RePEc:hhs:lunewp:2014_002
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    References listed on IDEAS

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    1. Timothy N. Cason & Roman M. Sheremeta & Jingjing Zhang, 2017. "Asymmetric and endogenous within-group communication in competitive coordination games," Experimental Economics, Springer;Economic Science Association, vol. 20(4), pages 946-972, December.

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    More about this item

    Keywords

    Coordination; Communication; Teams; Routines; Authority;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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