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Waiting for others: Long delays in social learning

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  • Frones, Luis

Abstract

Does waiting to observe others’ actions delay profitable choices? If so, for how long? We study a social learning environment in which players decide whether and when to undertake an irreversible risky investment. The timing is asymmetric: some players face an investment opportunity earlier than others. We prove the existence of equilibria with arbitrarily long delays, where, with positive probability, the first investment occurs after several periods without investment. In these equilibria, the better-informed player need not invest first, delays may persist even when signals are highly precise, and their duration is independent of the number of players. We illustrate how this framework can help explain observed investment dynamics in the venture capital industry.

Suggested Citation

  • Frones, Luis, 2026. "Waiting for others: Long delays in social learning," Journal of Mathematical Economics, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:mateco:v:124:y:2026:i:c:s0304406826000327
    DOI: 10.1016/j.jmateco.2026.103244
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