Decision Making and Learning in a Globalizing World

Abstract

Decision-makers can benefit from the experience of others with solutions to common problems. If a best practice exists, the challenge is to recognize it and to ensure its diffusion. Information about di¤erent solutions is often dispersed, and decision-makers may be reluctant to switch for reputational reasons. We study how (i) the assignment of decision rights (who decides on the solutions’ implementation?) and (ii) globalization (who knows what about solutions adopted in other places?) influence both the quality of the information on locally adopted solutions that decision-makers exchange and the quality of the solutions that are actually being used next.