• Corpus ID: 250334738

Private Information Acquisition and Preemption: a Strategic Wald Problem

@inproceedings{Bai2022PrivateIA,
  title={Private Information Acquisition and Preemption: a Strategic Wald Problem},
  author={Guo-Jhen Bai},
  year={2022}
}
This paper studies a dynamic information acquisition model with payoff externalities. Two players can acquire costly information about an unknown state before taking a safe or risky action. Both information and the action taken are private. The first player to take the risky action has an advantage but whether the risky action is profitable depends on the state. The players face the tradeoff between being first and being right. In equilibrium, for different priors, there exist three kinds of… 

Figures from this paper

References

SHOWING 1-10 OF 12 REFERENCES

Unrestricted information acquisition ∗

In many strategic environments, information acquisition is a central component of the game that is played. Being uncertain about a payoff-relevant state, a player in a game has a two-fold incentive to

Knowing What Others Know: Coordination Motives in Information Acquisition

The objective function of the dynamic planning and price adjustment model is derived from a fully specified dynamic general equilibrium model, similar to Hellwig (2004), with the main difference being the updating of information by firms.

Negative results in science: Blessing or (winner’s) curse?

Two players receiving independent signals on a risky project with common value compete to be the first to invest. We characterize the equilibrium of this preemption game as the publicity of signals

Strategic Experimentation with Poisson Bandits

This paper studies a game of strategic experimentation with two-armed bandits where the risky arm distributes lump-sum payoffs according to a Poisson process. The intensity of this process is either

Coordination with Flexible Information Acquisition

Flexible information acquisition in a coordination game means that players choose not only how much but also what kind of information to acquire, which enables players to acquire information that makes efficient coordination possible, which also leads to multiple equilibria.

Optimal Dynamic Allocation of Attention

We consider a decision maker (DM) who, before taking an action, seeks information by allocating her limited attention dynamically over different news sources that are biased toward alternative

Optimal Learning Before Choice

This work shows that the decision maker considers an alternative for learning or adoption if and only if the expected payoff of the alternative is above a threshold, and describes the optimal learning policy when the outside option is relatively high, and discusses several extensions.

Competition and Errors in Breaking News

Reporting errors are endemic to breaking news, even though accuracy is prized by consumers. I present a continuous-time model to understand the strategic forces behind such reporting errors. News

Searching for Information

This paper provides a microfounded information acquisition technology based on a simple framework with information search that constructs a tractable mapping from resource (attention) allocations to the precision and the correlation of agents’ information under varying degrees of searchability of information.

Rational Inattention When Decisions Take Time

This work formalizes insight in the context of a dynamic rational inattention (RI) model and demonstrates that the state-contingent choice probabilities predicted by the model are identical to those predicted by a static RI model, providing a micro-foundation for such models.