2008-03-01
The consequences of endogenizing information for the performance of a sequential decision procedure
Publication
Publication
Journal of Economic Behavior & Organization , Volume 65 - Issue 3-4 p. 667- 681
We analyse the implications of endogenizing information collection and reputational concerns for the performance of a sequential decision structure. In this model, two agents decide in a sequence whether to implement a public project. The cost of gathering information is private. We derive two results. First, endogenizing information replaces the herding problem with a free-rider problem. Second, endogenizing information aggravates the distortionary effect of reputational concerns.
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| doi.org/10.1016/j.jebo.2005.11.003, hdl.handle.net/1765/11731 | |
| Journal of Economic Behavior & Organization | |
| Organisation | Erasmus School of Economics |
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Visser, B., & Swank, O. (2008). The consequences of endogenizing information for the performance of a sequential decision procedure. Journal of Economic Behavior & Organization, 65(3-4), 667–681. doi:10.1016/j.jebo.2005.11.003 |
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