Teams Make You Smarter: Learning and Knowledge Transfer in Auctions and Markets by Teams and Individuals

37 Pages Posted: 16 Aug 2010

See all articles by Boris Maciejovsky

Boris Maciejovsky

Imperial College London

Matthias Sutter

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods; University of Cologne - Department of Economics

David V. Budescu

Fordham University - Fordham College at Rose Hill

Patrick Bernau

University of Cologne - Department of Economics

Abstract

We study the impact of team decision making on market behavior and its consequences for subsequent individual performance in the Wason selection task, the single-most studied reasoning task. We reformulated the task in terms of "assets" in a market context. Teams of traders learn the task's solution faster than individuals and achieve this with weaker, less specific, performance feedback. Some teams even perform better than the best individuals. The experience of team decision-making in the market also creates positive knowledge spillovers for post-market individual performance in solving new Wason tasks, implying that team experiences enhance individual problem-solving skills.

Keywords: team decisions, markets, auctions, Wason selection task, rationality

JEL Classification: C91, C92, D03

Suggested Citation

Maciejovsky, Boris and Sutter, Matthias and Budescu, David V. and Bernau, Patrick, Teams Make You Smarter: Learning and Knowledge Transfer in Auctions and Markets by Teams and Individuals. IZA Discussion Paper No. 5105. Available at SSRN: https://ssrn.com/abstract=1659084

Boris Maciejovsky (Contact Author)

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

Matthias Sutter

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

University of Cologne - Department of Economics

Cologne, 50923
Germany

David V. Budescu

Fordham University - Fordham College at Rose Hill ( email )

United States

Patrick Bernau

University of Cologne - Department of Economics ( email )

Cologne, 50923
Germany

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