The role of aggregate information in a binary threshold game
Bo Chen () and
Rajat Deb ()
Additional contact information
Bo Chen: Southern Methodist University
Rajat Deb: Southern Methodist University
Social Choice and Welfare, 2018, vol. 51, issue 3, 381-414
Abstract We analyze the problem of coordination failure in the presence of imperfect information in the context of a binary-action sequential game with a tipping point. An information structure summarizes what each agent can observe before making her decision. Focusing on information structures where only “aggregate information” from past history can be observed, we characterize information structures that can lead to various (efficient and inefficient) Nash equilibria. When individual decision making can be rationalized using a process of iterative dominance (Moulin, Econometrica 47:1337–1351, 1979), we derive a necessary and sufficient condition on information structures under which a unique and efficient dominance solvable equilibrium outcome is obtained. Our results suggest that if sufficient (and not necessarily perfect) information is available, coordination failure can be overcome without centralized intervention.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s00355-018-1122-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:sochwe:v:51:y:2018:i:3:d:10.1007_s00355-018-1122-8
Ordering information: This journal article can be ordered from
http://www.springer. ... c+theory/journal/355
Access Statistics for this article
Social Choice and Welfare is currently edited by Bhaskar Dutta, Marc Fleurbaey, Elizabeth Maggie Penn and Clemens Puppe
More articles in Social Choice and Welfare from Springer, The Society for Social Choice and Welfare Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().