Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
884471 | Journal of Economic Behavior & Organization | 2008 | 15 Pages |
Abstract
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.
Related Topics
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Authors
Otto Swank, Bauke Visser,