When members of an organization share communication codes, coordination across subunits is easier. But if groups interact separately, they will each develop a specialized code. This paper asks: Can organizations shape how people interact in order to create shared communication codes? What kinds...

It has been suggested that players often produce simplified and/or misspecified mental representations of interactive decision problems (Kreps, 1990). We submit that the relational structure of players' preferences in a game induces cognitive complexity, and may be an important driver of such...

The available experimental evidence suggests that even two-person normal form games with an elementary action space present substantial degrees of cognitive difficulty. We submit that the relational structure of the players' preferences is a source of complexity of a game. We provide a formal...

Research in experimental and behavioral game theory has revealed a substantial and persistent degree of heterogeneity in the strategic behavior of real individuals. While the prevailing theoretical explanations of the observed heterogeneity typically invoke underlying differences in beliefs...

When we engage in the process of division of labor, there are typically multiple alternatives, but insufficient knowledge to choose among them. Under such conditions, we propose that not all alternatives are equally likely to be pursued. In particular, when we engage in the process of division...

We develop an experimental setting where the assumptions and predictions of the garbage can model can be tested. A careful reconstruction of the original simulation model enables us to select parameters that leave room for potential variations in individual behavior. Our experimental design...