Organizational Languages
Name
organizational_languages_wernerfelt_nov03.pdf
Size
150.21 KB
Format
Adobe PDF
Checksum (MD5)
af75b25d679460f87644dc4ff1209f45
Author(s)
Wernerfelt, Birger
Date Issued
November 11, 2003
Abstract
The paper is concerned with communication within a team of players trying to coordinate in response to information dispersed among them. The problem is nontrivial because they cannot communicate all information instantaneously, but have to send longer or shorter sequences of messages, using coarse codes. We focus on the design of these codes and show that members may gain compatibility advantages by using identical codes, and that this can support the existence of several, more or less efficient, symmetric equilibria. Asymmetric equilibria may exist only if coordination across different sets of members is of sufficiently different importance. The results are consistent with the stylized fact that firm differ even within industries and that coordination between divisions is harder than coordination inside divisions.
Subjects
Communication
Organization
coarse codes
MIT Department
Massachusetts Institute of Technology. Center for Innovation in Product Development
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