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Global vs. Local Information in (Anti-)Coordination Problems with Imitators

  • Leonardo Boncinelli
Published/Copyright: June 13, 2008
The B.E. Journal of Theoretical Economics
From the journal The B.E. Journal of Theoretical Economics Volume 8 Issue 1

In this paper I apply stochastic stability to compare the effect on welfare of local information and global information when agents adopt imitative behavioral rules. Under global information, agents can potentially imitate anyone, while under local information, the sets of observable agents are choice-dependent. The evaluation of information in terms of welfare enhancement is ambiguous over finite time horizons, while in the long run global information is worse (better) in the presence of pure negative (positive) spillovers. However, when preferences also depend on the choice itself, further ambiguity emerges, generally making the comparison uncertain.

Keywords: imitation; local information; global information; stochastic stability
Published Online: 2008-6-13

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston

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  1. Topics Article
  2. When Stackelberg and Cournot Equilibria Coincide
  3. Conflict and Consensus: A Theory of Control in Organisations
  4. Backward Integrated Information Gatekeepers and Independent Divisions in the Product Market
  5. Identification of Individual Demands from Market Data under Uncertainty
  6. On the Role of Uncertainty in the Risk-Incentives Tradeoff
  7. Time-to-Build and the Inverse U-Shape Investment-Uncertainty Relationship
  8. Revisiting Independence and Stochastic Dominance for Compound Lotteries
  9. On Competitive Equilibria with Asymmetric Information
  10. A Duopoly Location Toolkit: Consumer Densities Which Yield Unique Spatial Duopoly Equilibria
  11. Purchasing Power Parity with Strategic Markets
  12. Global vs. Local Information in (Anti-)Coordination Problems with Imitators
  13. Costly Evidence Production and the Limits of Verifiability
  14. Research Joint Ventures, Optimal Licensing, and the R&D Subsidy Policy
  15. Comparative Statics and Welfare in Heterogeneous All-Pay Auctions: Bribes, Caps, and Performance Thresholds
  16. Ex Post Private Information and Monopolistic Screening
  17. Passing the Buck in Sequential Negotiation
  18. Bidding Strategies for Simultaneous Ascending Auctions
  19. The Dirty Face Problem with Unawareness
  20. Cost Pass-Through under Delegation
  21. Contributions Article
  22. Empirical Implications of Information Structure in Finite Extensive Form Games
  23. Counter Marginalization of Information Rents: Implementing Negatively Correlated Compensation Schemes for Colluding Parties
  24. Forgiving-Proof Equilibrium in Infinitely Repeated Games
  25. A Categorical Model of Cognition and Biased Decision Making
  26. Mechanism Design with Moderate Evidence Cost
  27. Connectivity and Allocation Rule in a Directed Network
  28. Competing for Recognition through Public Good Provision
  29. Principal-Agent Problems with Exit Options
  30. Herd Behavior and Contagion in Financial Markets
  31. A Constructive Proof that Learning in Repeated Games Leads to Nash Equilibria
  32. Advances Article
  33. The Full Surplus Extraction Theorem with Hidden Actions
https://doi.org/10.2202/1935-1704.1439
Keywords for this article
imitation; local information; global information; stochastic stability

Articles in the same Issue

  1. Topics Article
  2. When Stackelberg and Cournot Equilibria Coincide
  3. Conflict and Consensus: A Theory of Control in Organisations
  4. Backward Integrated Information Gatekeepers and Independent Divisions in the Product Market
  5. Identification of Individual Demands from Market Data under Uncertainty
  6. On the Role of Uncertainty in the Risk-Incentives Tradeoff
  7. Time-to-Build and the Inverse U-Shape Investment-Uncertainty Relationship
  8. Revisiting Independence and Stochastic Dominance for Compound Lotteries
  9. On Competitive Equilibria with Asymmetric Information
  10. A Duopoly Location Toolkit: Consumer Densities Which Yield Unique Spatial Duopoly Equilibria
  11. Purchasing Power Parity with Strategic Markets
  12. Global vs. Local Information in (Anti-)Coordination Problems with Imitators
  13. Costly Evidence Production and the Limits of Verifiability
  14. Research Joint Ventures, Optimal Licensing, and the R&D Subsidy Policy
  15. Comparative Statics and Welfare in Heterogeneous All-Pay Auctions: Bribes, Caps, and Performance Thresholds
  16. Ex Post Private Information and Monopolistic Screening
  17. Passing the Buck in Sequential Negotiation
  18. Bidding Strategies for Simultaneous Ascending Auctions
  19. The Dirty Face Problem with Unawareness
  20. Cost Pass-Through under Delegation
  21. Contributions Article
  22. Empirical Implications of Information Structure in Finite Extensive Form Games
  23. Counter Marginalization of Information Rents: Implementing Negatively Correlated Compensation Schemes for Colluding Parties
  24. Forgiving-Proof Equilibrium in Infinitely Repeated Games
  25. A Categorical Model of Cognition and Biased Decision Making
  26. Mechanism Design with Moderate Evidence Cost
  27. Connectivity and Allocation Rule in a Directed Network
  28. Competing for Recognition through Public Good Provision
  29. Principal-Agent Problems with Exit Options
  30. Herd Behavior and Contagion in Financial Markets
  31. A Constructive Proof that Learning in Repeated Games Leads to Nash Equilibria
  32. Advances Article
  33. The Full Surplus Extraction Theorem with Hidden Actions
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