search query: @freeterm SPILLOVERS / total: 36
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| Author: | Frisell, L. |
| Title: | On the interplay of informational spillovers and payoff externalities |
| Journal: | RAND Journal of Economics
2003 : AUTUMN, VOL. 34:3, p. 582-592 |
| Index terms: | Externalities Information |
| Freeterms: | Spillovers |
| Language: | eng |
| Abstract: | Informational spillovers induce agents to outwait each other's actions in order to make more-informed decisions. If waiting is costly, the best-informed agent, who has the least to learn from other agents' decisions, is expected to take the first action. In this article, the interplay between informational spillovers and a direct payoff externality is studied. It is shown that when the payoff externality is positive or relatively weak, the above intuition is validated. On the other hand, if the externality is negative and strong, the best-informed agent has the most to gain from outwaiting the other. |
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