The costs and benefits of coordinating with a different group

We consider a setup where agents care about i) taking actions that are close to their preferences, and ii) coordinating with others. The preferences of agents in the same group are drawn from the same distribution. Each individual is exogenously matched with other agents randomly selected from the p...

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Main Authors: Grout, Paul A., Mitraille, Sébastien, Sonderegger, Silvia
Format: Article
Published: Elsevier 2015
Subjects:
Online Access:https://eprints.nottingham.ac.uk/29363/
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author Grout, Paul A.
Mitraille, Sébastien
Sonderegger, Silvia
author_facet Grout, Paul A.
Mitraille, Sébastien
Sonderegger, Silvia
author_sort Grout, Paul A.
building Nottingham Research Data Repository
collection Online Access
description We consider a setup where agents care about i) taking actions that are close to their preferences, and ii) coordinating with others. The preferences of agents in the same group are drawn from the same distribution. Each individual is exogenously matched with other agents randomly selected from the population. Starting from an environment where everyone belongs to the same group, we show that introducing agents from a different group (whose preferences are uncorrelated with those of each of the incumbents) generates costs but may also (surprisingly) generate benefits in the form of enhanced coordination.
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spelling nottingham-293632020-05-04T20:06:01Z https://eprints.nottingham.ac.uk/29363/ The costs and benefits of coordinating with a different group Grout, Paul A. Mitraille, Sébastien Sonderegger, Silvia We consider a setup where agents care about i) taking actions that are close to their preferences, and ii) coordinating with others. The preferences of agents in the same group are drawn from the same distribution. Each individual is exogenously matched with other agents randomly selected from the population. Starting from an environment where everyone belongs to the same group, we show that introducing agents from a different group (whose preferences are uncorrelated with those of each of the incumbents) generates costs but may also (surprisingly) generate benefits in the form of enhanced coordination. Elsevier 2015-12 Article PeerReviewed Grout, Paul A., Mitraille, Sébastien and Sonderegger, Silvia (2015) The costs and benefits of coordinating with a different group. Journal of Economic Theory, 160 . pp. 517-535. ISSN 0022-0531 Diversity Coordination Social Interactions Value of Information Complementarities https://www.sciencedirect.com/science/article/pii/S0022053115001787 doi:10.1016/j.jet.2015.09.006 doi:10.1016/j.jet.2015.09.006
spellingShingle Diversity
Coordination
Social Interactions
Value of Information
Complementarities
Grout, Paul A.
Mitraille, Sébastien
Sonderegger, Silvia
The costs and benefits of coordinating with a different group
title The costs and benefits of coordinating with a different group
title_full The costs and benefits of coordinating with a different group
title_fullStr The costs and benefits of coordinating with a different group
title_full_unstemmed The costs and benefits of coordinating with a different group
title_short The costs and benefits of coordinating with a different group
title_sort costs and benefits of coordinating with a different group
topic Diversity
Coordination
Social Interactions
Value of Information
Complementarities
url https://eprints.nottingham.ac.uk/29363/
https://eprints.nottingham.ac.uk/29363/
https://eprints.nottingham.ac.uk/29363/