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Group size as selection device

Author

Listed:
  • Francesco De Sinopoli
  • Leo Ferraris
  • Claudia Meroni

Abstract

In a coordination game with multiple Pareto ordered equilibria and population uncertainty, we show that group size helps select a unique equilibrium, for reasons reminiscent of the global games literature. A critical mass phenomenon emerges at equilibrium. Group size has an emboldening effect on participants.

Suggested Citation

  • Francesco De Sinopoli & Leo Ferraris & Claudia Meroni, 2024. "Group size as selection device," Working Papers 533, University of Milano-Bicocca, Department of Economics.
    • Handle: RePEc:mib:wpaper:533
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Poisson Games; Coordination Games; Equilibrium Selection; Global Games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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