Simultaneous Versus Sequential Modes of Communication in an Organization

Abstract

This paper studies an organizational knowledge sharing process which requires costly "teaching" and "learning" efforts on the part of the sender and receiver, respectively. The process is a team problem in which the principal rewards successful communication by optimally rewarding performance. In this setting we compare two modes of communication with regard to efficiency. The first is sequential in which the sender pre-commits to teaching and the receiver acts as a follower. The second is simultaneous where each agent simultaneously exerts effort. A key result is that the sequential mode dominates when teaching and learning are complements, but the simultaneous mode dominates if teaching and learning are substitutes.

Keywords: Modes of Communication

JEL Classification: L5