Publication Type
Working Paper
Version
publishedVersion
Publication Date
1-2016
Abstract
We analyze a sequential decision model with endogenous ordering in which decision makers are allowed to choose the time of acting (exercising a risky investment option) or waiting. We show the existence of a unique symmetric equilibrium and characterize information cascade under endogenous ordering. Further, if there are two or more risky investment options, individuals tend to wait longer with competition. Hence, we could end up with a dilemma: more options might be worse.
Keywords
Information Cascade, Endogenous Ordering, Competition
Discipline
Economic Theory | Industrial Organization
Research Areas
Economic Theory
First Page
1
Last Page
30
Citation
ZHANG, Yi.
Robust Information Cascade with Endogenous Ordering. (2016). 1-30.
Available at: https://ink.library.smu.edu.sg/soe_research/1688
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.