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.
De Sinopoli, F., Ferraris, L., Meroni, C. (2026). Group size as selection device. ECONOMIC THEORY [10.1007/s00199-026-01714-3].
Group size as selection device
Ferraris L.;
2026
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.
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