The consequences of endogenizing information for the performance of a sequential decision procedure

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2008
Volume: 65
Issue: 3-4
Pages: 667-681

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyse the implications of endogenizing information collection and reputational concerns for the performance of a sequential decision structure. In this model, two agents decide in a sequence whether to implement a public project. The cost of gathering information is private. We derive two results. First, endogenizing information replaces the herding problem with a free-rider problem. Second, endogenizing information aggravates the distortionary effect of reputational concerns.

Technical Details

RePEc Handle
repec:eee:jeborg:v:65:y:2008:i:3-4:p:667-681
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29