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Waiting for My Neighbors

Author

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  • Sidartha Gordon

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique, Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres)

  • Emeric Henry

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research)

  • Pauli Murto

    (Aalto University)

Abstract

We introduce a neighborhood structure in a waiting game, where the payoff of stopping increases when neighbors stop. We show that the dynamic evolution of the network can take the form of either a shrinking network, where players at the edges stop first, or a fragmenting network where interior players do. In addition to the coordination inefficiency standard in waiting games, the neighborhood structure gives rise to an additional inefficiency linked to the order in which players stop. We discuss an application to technology adoption in networks.

Suggested Citation

  • Sidartha Gordon & Emeric Henry & Pauli Murto, 2021. "Waiting for My Neighbors," SciencePo Working papers Main hal-03874202, HAL.
    • Handle: RePEc:hal:spmain:hal-03874202
    DOI: 10.1111/1756-2171.12368
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03874202
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    Cited by:

    1. Gary Biglaiser & Jacques Crémer & André Veiga, 2020. "Migration between Platforms," CESifo Working Paper Series 8185, CESifo.
    2. Biglaiser, Gary & Crémer, Jacques & Veiga, Andre, 2022. "Should I stay or should I go? Migrating away from an incumbent platform," CEPR Discussion Papers 14496, C.E.P.R. Discussion Papers.
    3. Guang Tian & Xiaoxue Du & Fangbin Qiao & Andres Trujillo-Barrera, 2021. "Technology Adoption and Learning-by-Doing: The Case of Bt Cotton Adoption in China," JRFM, MDPI, vol. 14(11), pages 1-13, November.
    4. Jacques Crémer & Gary Biglaiser & André Veiga, 2022. "Should I stay or should I go? Migrating away from an incumbent platform," Post-Print hal-03792918, HAL.
    5. Crémer, Jacques & Biglaiser, Gary & Veiga, André, 2022. "Should I stay or should I go? Migrating away from an incumbent platform," TSE Working Papers 21-1281, Toulouse School of Economics (TSE).

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    More about this item

    Keywords

    Waiting games; Networks; Inefficiencies;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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