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Is knowledge curse or blessing in pure coordination problems?

Citation

Chuah, S-H and Hoffman, R and Larner, J, Is knowledge curse or blessing in pure coordination problems?, Theory and Decision, 87 pp. 123-146. ISSN 0040-5833 (2019) [Refereed Article]

Copyright Statement

Copyright 2019 Springer Science+Business Media, LLC, part of Springer Nature

DOI: doi:10.1007/s11238-019-09692-w

Abstract

Does greater knowledge help or hinder one’s ability to coordinate with others? While individual expertise can reveal a suitable focal point to converge on, ‘blissful’ ignorance may systematically bias decisions towards it through mere recognition. Our experiment finds in favour of the former possibility. Both specific and general knowledge are significantly associated with success in four of five coordination problems as well as over all. Our analysis suggests that more knowledgeable participants are better able to identify focal decision alternatives because (1) they are aware of more such alternatives and (2) possess more relevant information about each.

Item Details

Item Type:Refereed Article
Keywords:coordination, information, curse of knowledge, focal points, recognition
Research Division:Economics
Research Group:Economic Theory
Research Field:Microeconomic Theory
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Microeconomics not elsewhere classified
UTAS Author:Chuah, S-H (Professor Swee-Hoon Chuah)
ID Code:137093
Year Published:2019
Deposited By:Economics and Finance
Deposited On:2020-01-31
Last Modified:2020-04-30
Downloads:0

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