We consider a standard sequential decision to adopt/buy a good in a herding environment. The setup is same as in Sgroi (2002). Contrary to the basic herding case we introduce a cost that the agents have to pay for the information about their predecessors' actions. All agents receive informative...

We characterize optimal strategies in a simple herding model where observations have a small cost. We assume that there are two states and two possible signals that each agent may get. The prior distribution is biased towards adopting behavior. That is, ex-ante, adopting gives a higher expected...

In this paper we consider equilibrium behavior in a Dutch (descending price) auction when the bidders are uninformed of their valuations with probability q and can acquire information about their valuation with a positive cost during the auction. We assume that the information acquisition...

Constitution is a pair of rules  <formula format="inline"> <simplemath>(s, S) </simplemath> </formula> that are used in a voting situation. The rule s is used to vote about the existing alternatives and the rule S is used to vote about changing the rule s to some other rule  <formula format="inline"> <simplemath>s′ </simplemath> </formula>. We consider what kind of constitutions are likely...