Team Reasoning as a Guide to Coordination

Lahno, Amrei Marie and Lahno, Bernd (2014): Team Reasoning as a Guide to Coordination.

Abstract

A particular problem of traditional Rational Choice Theory is that it cannot explain equilibrium selection in simple coordination games. In this paper we analyze and discuss the solution concept for common coordination problems as incorporated in the theory of Team Reasoning (TR). Special consideration is given to TR’s concept of opportunistic choice and to the resulting restrictions in using private information. We report results from a laboratory experiment in which teams were given a chance to coordinate on a particular pattern of behavior in a sequence of HiLo games. A modification of the stage game offered opportunities to improve on the team goal through changing this accustomed pattern of behavior. Our observations throw considerable doubt on the idea of opportunistic team reasoning as a guide to coordination. Contrary to what TR would predict, individuals tend to stick to accustomed behavioral patterns. Moreover, we find that individual decisions are at least partly determined by private information not accessible to all members of a team. Alternative theories of choice, in particular cognitive hierarchy theory may be more suitable to explain the observed pattern of behavior.

• Item Type: MPRA Paper
• Language: English
• Keywords: team reasoning, collective agency, coordination, opportunistic choice, laboratory experiment.
• Subjects: C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior; C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C92 - Laboratory, Group Behavior; D - Microeconomics > D0 - General > D03 - Behavioral Microeconomics: Underlying Principles; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D70 - General

References

Bacharach, M. (1999). Interactive team reasoning: a contribution to the theory of co-operation. Research in Economics 53(2), 117–147.

Bacharach, M. (2006). Beyond individual choice: teams and frames in game theory. Princeton University Press.

Bardsley, N., J. Mehta, C. Starmer, and R. Sugden (2010). Explaining focal points: cognitive hierarchy theory versus team reasoning. The Economic Journal 120(543), 40–79.

Bolton, G. E. and A. Ockenfels (2000). Erc: A theory of equity, reciprocity, and competition. American Economic Review 90(1), 166–193.

Camerer, C. F., T.-H. Ho, and J.-K. Chong (2004). A cognitive hierarchy model of games. The Quarterly Journal of Economics 119(3), 861–898.

Colman, A. M., B. D. Pulford, and J. Rose (2008). Collective rationality in interactive decisions: Evidence for team reasoning. Acta Psychologica 128(2), 387–397.

Cubitt, R. P. and R. Sugden (2003). Common knowledge, salience and convention: A reconstruction of david lewis’ game theory. Economics and Philosophy 19(2), 175–210.

Fehr, E. and K. M. Schmidt (1999). A theory of fairness, competition, and cooperation. The Quarterly Journal of Economics 114(3), 817–868.

Gintis, H. (2009). The bounds of reason: game theory and the unification of the behavioral sciences. Princeton University Press.

Gintis, H. (2010). Social norms as choreography. politics, philosophy & economics 9(3), 251–264.

Gold, N. and R. Sugden (2007). Collective intentions and team agency. The Journal of Philosophy 104(3), 109–137.

Hindriks, F. (2012). Team reasoning and group identification. Rationality and Society 24(2), 198–220.

Hodgson, D. H. (1967). Consequences of Utilitarianism: A Study in Normative Ethics and Legal Theory. Clarendon. 32

Holt, C. A. and S. K. Laury (2002). Risk aversion and incentive effects. American Economic Review 92(5), 1644–1655.

Kliemt, H. (2009). Philosophy and Economics I: Methods and Models. Oldenbourg.

Lahno, B. (2007). Rational choice and rule-following behavior. Rationality and Society 19(4), 425–450.

Lahno, B. (2010). Norms as reasons for action. Archiv fu ̈r Rechts-und Sozialphilosphie 95(4), 563–578. Regan, D. (1980). Utilitarianism and Co-operation. Oxford University Press.

Sugden, R. (1991). Rational choice: a survey of contributions from economics and philosophy. The Economic Journal 101(407), 751–785.

Sugden, R. (1993). Thinking as a team: Towards an explanation of nonselfish behavior. Social Philosophy and Policy 10(1), 69–89.

Sugden, R. (2000). Team preferences. Economics and Philosophy 16(2), 175–204.

Sugden, R. (2003). The logic of team reasoning. Philosophical Explorations 6(3), 165–181.