Collective Progress: Dynamics of Exit Waves

44 Pages Posted: 8 Jul 2021

See all articles by Doruk Cetemen

Doruk Cetemen

Collegio Carlo Alberto

Can Urgun

Princeton University

Leeat Yariv

Princeton University

Date Written: June 30, 2021

Abstract

We study a model of collective search by teams. Discoveries beget discoveries and correlated search results are governed by a Brownian path. Search results' variation at any point---the search scope---is jointly controlled. Agents individually choose when to cease search and implement their best discovery. We characterize equilibrium and optimal policies. Search scope is constant and independent of search outcomes as long as no member leaves. It declines after departures. A simple drawdown stopping boundary governs each agent’s search termination. We show the emergence of endogenous exit waves, whereby possibly heterogeneous agents cease search all at once.

Keywords: Retrospective Search, Optimal Stopping, Collective Action, Exit Waves

JEL Classification: C73, D81, D83, O35

Suggested Citation

Cetemen, Doruk and Urgun, Can and Yariv, Leeat, Collective Progress: Dynamics of Exit Waves (June 30, 2021). Available at SSRN: https://ssrn.com/abstract=3877688 or http://dx.doi.org/10.2139/ssrn.3877688

Doruk Cetemen

Collegio Carlo Alberto

Piazza Arbarello 8, Torino
Torino, Torino 10122
Italy
+39 011 670 5000 (Phone)
+39 011 670 5082 (Fax)

HOME PAGE: http://https://www.carloalberto.org/

Can Urgun

Princeton University ( email )

Leeat Yariv (Contact Author)

Princeton University ( email )

Princeton, NJ 08544-1021
United States

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