This paper compares centralized and decentralized coordination when managers are privately informed and communicate … for coordination improves horizontal communication but worsens vertical communication. As a result, no matter how … important coordination is, decentralization dominates centralization if the division managers are not too biased towards their …

; coordination ; experiment … benefit from coordination (or centralization) of search activities. We test the conjecture that agents gain from coordination … with a between-subject design in two treatments. In the experiments we find no gains from coordination. Instead, we find …