Handbook of Economic Organization
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Handbook of Economic Organization

Integrating Economic and Organization Theory

Edited by Anna Grandori

This comprehensive and groundbreaking Handbook integrates economic and organization theories to help elucidate the design and evolution of economic organization. Economic organization is regarded both as a subject of inquiry and as an emerging disciplinary field in its own right, integrating insights from economics, organization theory, strategy and management, economic sociology and congnitive psychology. The contributors, who share this integrated approach, are distinguished scholars at the productive peak in their fields. Each original, state-of-the art chapter not only addresses foundational issues, but also identifies key issues for future research.
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Chapter 14: Organizational formation and change: lessons from economic laboratory experiments

Peter H. Kriss and Roberto Weber

Extract

This chapter reviews research in which economic laboratory experiments shed light on the processes that influence organizational formation and change. An organization, in these experiments, is represented by an abstract collective production activity that takes place in a controlled laboratory setting with incentivized human subjects. The studies typically attempt to identify factors that enhance efficient production. Our review focuses on experiments that explore features of how organizations originate, grow, and implement change, and the roles of communication and leadership in managing these processes. Our survey concludes that laboratory experiments of this type present a useful way to identify important factors that influence the relationship between individual behaviors and organizational performance at critical stages, which might otherwise be difficult to isolate outside the laboratory.

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