EconPapers    
Economics at your fingertips  
 

Can learning cause shorter delays in reaching agreements?

Xi Weng

Journal of Mathematical Economics, 2015, vol. 60, issue C, 49-62

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.

Keywords: Learning; War of attrition; Delay; Incomplete information (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304406815000658
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:60:y:2015:i:c:p:49-62

Access Statistics for this article

Journal of Mathematical Economics is currently edited by Atsushi (A.) Kajii

More articles in Journal of Mathematical Economics from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2017-09-29
Handle: RePEc:eee:mateco:v:60:y:2015:i:c:p:49-62