Delay and information aggregation in stopping games with private information

A-Tier
Journal: Journal of Economic Theory
Year: 2013
Volume: 148
Issue: 6
Pages: 2404-2435

Authors (2)

Murto, Pauli (not in RePEc) Välimäki, Juuso (Aalto-yliopisto)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We consider equilibrium timing decisions in a model with a large number of players and informational externalities. The players have private information about a common payoff parameter that determines the optimal time to invest. They learn from each other in real time by observing past investment decisions. We develop new methods of analysis for such large games, and we give a full characterization of symmetric equilibria. We show that the equilibrium statistical inferences are based on an exponential learning model. Although the beliefs converge to truth, learning takes place too late. Ex-ante welfare is strictly between that without observational learning and that with full information.

Technical Details

RePEc Handle
repec:eee:jetheo:v:148:y:2013:i:6:p:2404-2435
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29