Can learning cause shorter delays in reaching agreements?

B-Tier
Journal: Journal of Mathematical Economics
Year: 2015
Volume: 60
Issue: C
Pages: 49-62

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

This paper uses a continuous-time war of attrition model to investigate how learning about private payoffs affects delays in reaching agreement. At each point in time, players may receive a private Poisson signal that completely reveals the concession payoff to be high (good-news learning) or low (bad-news learning). In the good-news model, the expected delay is always non-monotonic in the learning rate: an increase in the learning rate prolongs delay in agreement if the learning rate is sufficiently low. In the bad-news model, numerical examples suggest learning prolongs delay as well.

Technical Details

RePEc Handle
repec:eee:mateco:v:60:y:2015:i:c:p:49-62
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29