Qu, Hong; Williams, Jared; Zhao, Ran; Kwasnica, Anthony M. - 2023
We consider a two-stage game with an option to analyze disclosures in the first stage, and a coordination game in the …—sophisticated players are likely to comprehend disclosures, while unsophisticated players are not. Our model predicts that coordination … phenomenon we call “coordinated ignorance.” We conduct laboratory experiments and show that coordination incentives reduce people …