
arXiv: 2604.24757
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 this informational “complexity” and coordination motives, this paper embeds a beauty-contest game in a complex environment. A new conformity phenomenon emerges. This effect may either encourage the exploration of unknown alternatives or generate a status-quo bias, depending on the network structure of players’ interactions. In an application, an organization with decentralized authority can implement profit maximization in a sufficiently complex environment.
FOS: Economics and business, Theoretical Economics (econ.TH), Theoretical Economics
FOS: Economics and business, Theoretical Economics (econ.TH), Theoretical Economics
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