| Popis: |
A committee divided into two factions is considering a costly project. Support of both factions is required for the project to be approved. As long as the decision is delayed, the committee can learn which faction benefits from the project. At the equilibrium, one of the factions effectively determines the time at which the project is approved. I show that a less efficient project may be more likely to be approved than a more efficient one. Furthermore, the equilibrium amount of learning is excessive, and a deadline on adopting the project is socially optimal in a wide range of settings. |
