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Is knowledge curse or blessing in pure coordination problems?

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  • Swee-Hoon Chuah

    (RMIT University)

  • Robert Hoffmann

    (RMIT University)

  • Jeremy Larner

    (Nottingham University Business School)

Abstract

Does greater knowledge help or hinder one’s ability to coordinate with others? While individual expertise can reveal a suitable focal point to converge on, ‘blissful’ ignorance may systematically bias decisions towards it through mere recognition. Our experiment finds in favour of the former possibility. Both specific and general knowledge are significantly associated with success in four of five coordination problems as well as over all. Our analysis suggests that more knowledgeable participants are better able to identify focal decision alternatives because (1) they are aware of more such alternatives and (2) possess more relevant information about each.

Suggested Citation

  • Swee-Hoon Chuah & Robert Hoffmann & Jeremy Larner, 2019. "Is knowledge curse or blessing in pure coordination problems?," Theory and Decision, Springer, vol. 87(1), pages 123-146, July.
    • Handle: RePEc:kap:theord:v:87:y:2019:i:1:d:10.1007_s11238-019-09692-w
    DOI: 10.1007/s11238-019-09692-w
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    Cited by:

    1. Gächter, Simon & Starmer, Chris & Thöni, Christian & Tufano, Fabio & Weber, Till O., 2022. "Social closeness can help, harm and be irrelevant in solving pure coordination problems," Economics Letters, Elsevier, vol. 216(C).

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