Header

UZH-Logo

Maintenance Infos

Dynamic coordination with individual learning


Dasgupta, Amil; Steiner, Jakub; Stewart, Colin (2012). Dynamic coordination with individual learning. Games and Economic Behavior, 74(1):83-101.

Abstract

We study coordination in dynamic global games with private learning. Players choose whether and when to invest irreversibly in a project whose success depends on its quality and the timing of investment. Players gradually learn about
project quality. We identify conditions on temporal incentives under which, in sufficiently long games, players coordinate on investing whenever doing so is not dominated. Roughly speaking, this outcome occurs whenever players' payoffs are sufficiently tolerant of non-simultaneous coordination. We also identify conditions under which players coordinate on the risk-dominant action. We provide foundations for these results in terms of higher order beliefs.

Abstract

We study coordination in dynamic global games with private learning. Players choose whether and when to invest irreversibly in a project whose success depends on its quality and the timing of investment. Players gradually learn about
project quality. We identify conditions on temporal incentives under which, in sufficiently long games, players coordinate on investing whenever doing so is not dominated. Roughly speaking, this outcome occurs whenever players' payoffs are sufficiently tolerant of non-simultaneous coordination. We also identify conditions under which players coordinate on the risk-dominant action. We provide foundations for these results in terms of higher order beliefs.

Statistics

Citations

Dimensions.ai Metrics
10 citations in Web of Science®
10 citations in Scopus®
Google Scholar™

Altmetrics

Downloads

22 downloads since deposited on 24 Sep 2019
22 downloads since 12 months
Detailed statistics

Additional indexing

Other titles:Dynamic coordination with private learning
Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Uncontrolled Keywords:Economics and econometrics, finance, coordination, global games, learning, common knowledge, delay
Language:English
Date:1 January 2012
Deposited On:24 Sep 2019 09:52
Last Modified:25 Sep 2019 00:47
Publisher:Elsevier
ISSN:0899-8256
OA Status:Green
Publisher DOI:https://doi.org/10.1016/j.geb.2011.07.005

Download

Green Open Access

Download PDF  'Dynamic coordination with individual learning'.
Preview
Content: Accepted Version
Filetype: PDF
Size: 279kB
View at publisher
Licence: Creative Commons: Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0)
Content: Published Version
Filetype: PDF - Registered users only
Size: 263kB