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Coordination in complex environments

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  • Pietro Dall'Ara

Abstract

Coordination is an important aspect of innovative contexts, where: the more innovative a course of action, the more uncertain its outcome. To study the interplay of coordination and informational ``complexity'', I embed a beauty-contest game into a complex environment. I identify a new conformity phenomenon. This effect may push towards the exploration of unknown alternatives or constitute a status-quo bias, depending on the network structure of players' interactions. In an application, I show that an organization with decentralized authority can implement profit maximization in a sufficiently complex environment.

Suggested Citation

  • Pietro Dall'Ara, 2026. "Coordination in complex environments," Papers 2604.24757, arXiv.org.
  • Handle: RePEc:arx:papers:2604.24757
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    File URL: http://arxiv.org/pdf/2604.24757
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