Group Size as Selection Device

28 Pages Posted: 13 Mar 2024

See all articles by Francesco De Sinopoli

Francesco De Sinopoli

University of Verona - Department of Economics

Leo Ferraris

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS)

Claudia Meroni

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM)

Date Written: March 12, 2024

Abstract

In a coordination game with multiple Pareto ordered equilibria and population uncertainty, we show that group size helps select a unique equilibrium, for reasons reminiscent of the global games literature. A critical mass phenomenon emerges at equilibrium. Group size has an emboldening effect on participants.

Keywords: Poisson games, coordination, equilibrium selection, global games

JEL Classification: C72, D82

Suggested Citation

De Sinopoli, Francesco and Ferraris, Leo and Meroni, Claudia, Group Size as Selection Device (March 12, 2024). University of Milan Bicocca Department of Economics, Management and Statistics Working Paper No. 533, Available at SSRN: https://ssrn.com/abstract=4757144 or http://dx.doi.org/10.2139/ssrn.4757144

Francesco De Sinopoli

University of Verona - Department of Economics

Via dell'Artigliere, 8
37129 Verona
Italy

Leo Ferraris (Contact Author)

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Claudia Meroni

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM) ( email )

Via Conservatorio, 7
Milan, 20122
Italy

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