- Title
- Collective Progress: Dynamics of Exit Waves
- Author(s)
- Doruk Cetemen Doruk Cetemen (Collegio Carlo Alberto)
- Can Urgun Can Urgun (Princeton University)
- Leeat Yariv Leeat Yariv (Princeton University, CEPR, and NBER)
- Abstract
- We study a model of collective search by teams. Discoveries beget discoveries and correlated search results are governed by a Brownian path. Search results’ variation at any point—the search scope—is jointly controlled. Agents individually choose when to cease search and implement their best discovery. We characterize equilibrium and optimal policies. Search scope is constant and independent of search outcomes as long as no member leaves. It declines after departures. A simple drawdown stopping boundary governs each agent’s search termination. We show the emergence of endogenous exit waves, whereby possibly heterogeneous agents cease search all at once.
- Creation Date
- 2021-06
- Section URL ID
- Paper Number
- 2021-34
- URL
- https://lyariv.mycpanel.princeton.edu/papers/TeamSearch.pdf
- File Function
- Jel
- C73, D81, D83, O35
- Keyword(s)
- Retrospective Search, Optimal Stopping, Collective Action, Exit Waves
- Suppress
- false
- Series
- 13