PulseExploreJournal ClubDebatesTrendingResearchersJournals
Instagram
HomeExploreJournal ClubTrending
Synapse
⌘+K
Synapse
February 5, 2026Theoretical Economics0 citationsOpen Access

Coordination with sequential information acquisition

XLXiaoye LiaoMSMichal Szkup

Key Points

  • The aim is to understand how initial beliefs and information choices impact coordination failure in decision-making scenarios.
  • Embedded interim information acquisition into global game theory framework.
  • Analyzed how agents choose information based on their posterior beliefs.
  • Evaluated the effects of different information precisions and costs on coordination outcomes.
  • Coordination on welfare‐inferior equilibria remains unchanged despite variations in information costs and precision.
  • Identified two-sided inefficiency in information acquisition among agents with differing prior beliefs.
  • Coordination failure can be eliminated with adequate signals, but efficient choices depend on policymakers observing private information.

Abstract

We investigate how differences in initial beliefs and sequential information choices affect the likelihood of coordination failure. To do so, we embed interim information acquisition (i.e., information acquisition after observing initial private information) into a standard global game mode with a normal information structure and improper prior. We find that the likelihood of coordination on welfare‐inferior equilibrium is invariant to precision, cost, and availability of information. We show that agents' information choices feature two‐sided inefficiency where too many agents with high posteriors and too few agents with low posteriors acquire information. Instead, under efficient information choices, the likelihood of coordination failure vanishes as the number of signals that agents can acquire tends to infinity. Unfortunately, efficient information choices are not implementable unless policymakers can observe agents' private information.

Ask AI
Helpful
Bookmark
Share
View Full Paper

Cite This Study

Liao et al. (2026) studied this question.

synapsesocial.com/papers/6984343ff1d9ada3c1fb21e4https://doi.org/10.3982/te5938
Ask AI
Helpful
Bookmark
Share
View Full Paper