Equilibria in a Dynamic Global Game: The role of cohort effects

We introduce strategic waiting in a global game setting. Players can wait in order to take a better informed decision. We allow for cohort effects, which naturally arise if the network externality in a given period depends on the mass of players who are actively using the technology at this point in time. Formally, cohort effects lead to intra-period network effects being greater than inter-period network effects. In the absence of cohort effects, our model has a unique rationalizable equilibrium. Cohort effects, however, can lead to multiple equilibria within the class of symmetric switching strategies.