We study a dynamic game in which all players initially possess the same information and coordinate on a high level of activity. Eventually, players with a long string of bad experiences become inactive. This prospect can cause a coordination avalanche in which all activity in the population...

We study a dynamic coordination game with incomplete information in which players may either be active or inactive. All players initially possess the same information and begin by coordinating on a high level of activity. As the game progresses, agents have different experiences and update...