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Teams Make You Smarter: Learning and Knowledge Transfer in Auctions and Markets by Teams and Individuals

Author

Listed:
  • Maciejovsky, Boris

    (Imperial College London)

  • Sutter, Matthias

    (Max Planck Institute for Research on Collective Goods)

  • Budescu, David V.

    (Fordham University)

  • Bernau, Patrick

Abstract

We study the impact of team decision making on market behavior and its consequences for subsequent individual performance in the Wason selection task, the single-most studied reasoning task. We reformulated the task in terms of "assets" in a market context. Teams of traders learn the task’s solution faster than individuals and achieve this with weaker, less specific, performance feedback. Some teams even perform better than the best individuals. The experience of team decision-making in the market also creates positive knowledge spillovers for post-market individual performance in solving new Wason tasks, implying that team experiences enhance individual problem-solving skills.

Suggested Citation

  • Maciejovsky, Boris & Sutter, Matthias & Budescu, David V. & Bernau, Patrick, 2010. "Teams Make You Smarter: Learning and Knowledge Transfer in Auctions and Markets by Teams and Individuals," IZA Discussion Papers 5105, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5105
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    References listed on IDEAS

    as
    1. David V. Budescu & Boris Maciejovsky, 2004. "The Effect of Monetary Feedback and Information Spillovers on Cognitive Errors: Evidence from Competitive Markets," Papers on Strategic Interaction 2004-32, Max Planck Institute of Economics, Strategic Interaction Group.
    2. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Collective vs individual decisions
      by chris dillow in Stumbling and Mumbling on 2010-07-30 19:03:35

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    Cited by:

    1. repec:cup:judgdm:v:8:y:2013:i:3:p:299-329 is not listed on IDEAS
    2. Alessia Isopi & Daniele Nosenzo & Chris Starmer, 2014. "Does consultation improve decision-making?," Theory and Decision, Springer, vol. 77(3), pages 377-388, October.
    3. Alessia Isopi & Daniele Nosenzo & Chris Starmer, 2014. "Does consultation improve decision-making?," Theory and Decision, Springer, vol. 77(3), pages 377-388, October.
    4. Carbone, Enrica & Infante, Gerardo, 2015. "Are groups better planners than individuals? An experimental analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 112-119.
    5. Juliane E. Kaemmer & Wolfgang Gaissmaier & Uwe Czienskowski, 2013. "The environment matters: Comparing individuals and dyads in their adaptive use of decision strategies," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 8(3), pages 299-329, May.

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    More about this item

    Keywords

    rationality; Wason selection task; markets; auctions; team decisions;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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