Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 27, 2021 erstellt
Description:
This paper examines individuals' incentives to express their polarized sentiments and the efficiency of the subsequent aggregate action in the presence of coordination motives. I consider situations in which every agent would like to take an action that is coordinated with those of others, as well as close to a common state of nature. Agents have polarized sentiments in the sense that their beliefs about the state can be biased in opposite directions. Before the coordination game is played, agents decide whether to reveal to the others their polar type. In equilibrium, full disclosure takes place only when the population composition is expected to be more balanced; otherwise, the minority group of agents have an incentive to mimic their majority counterparts. In addition, the analysis on the aggregate action indicates that a diverse yet unbalanced population can jointly make a more efficient decision, especially when the coordination motive is strong but little is known about the underlying state