Team Decision-Making and Individual Learning in the Newsvendor Problem: A Laboratory Investigation

30 Pages Posted: 13 Jun 2015 Last revised: 20 Jun 2015

See all articles by Nico Laya

Nico Laya

Open Country Dairy

Valery Pavlov

The University of Auckland Business School

Date Written: June 12, 2015

Abstract

This laboratory study investigates the impact of the decision-making hierarchy and heterogeneity of knowledge on team performance and on individual performance after the team is dissolved. Our experiment examines effects of both factors. Hierarchical teams perform similarly to individual decision-makers but flat teams outperform both by making fewer extremely poor decisions. Additionally, former members of flat teams make better decisions than former members of hierarchical teams and participants who were not involved in team decision-making. The effects of knowledge heterogeneity are more subtle. While experts do not seem to improve the performance of their teams, their former team members tend to get rid of their old biases more effectively than individuals and former members of homogeneous teams.

Keywords: behavioral operations; knowledge transfer; newsvendor; group learning

JEL Classification: C92, D70, D83

Suggested Citation

Laya, Nico and Pavlov, Valery, Team Decision-Making and Individual Learning in the Newsvendor Problem: A Laboratory Investigation (June 12, 2015). Available at SSRN: https://ssrn.com/abstract=2617543 or http://dx.doi.org/10.2139/ssrn.2617543

Nico Laya

Open Country Dairy ( email )

PO Box 11 159
Ellerslie
Auckland, 1542
New Zealand

Valery Pavlov (Contact Author)

The University of Auckland Business School ( email )

Private Bag 92019
Auckland Mail Centre
Auckland, 1142
New Zealand

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