We design a laboratory experiment to study behavior in a multidivisional organization. The organization faces a trade-off between coordinating its decisions across the divisions and meeting division-specific needs that are known only to the division managers, who can communicate their private...

We design a laboratory experiment to study behavior in a multidivisional organization facing a trade-off between coordinating its decisions across the divisions and meeting division-specific needs that are known only to the division managers. The managers communicate their private information...