Competing Conventions with Costly Information Acquisition

We consider an evolutionary model of social coordination in a 2 × game where two groups players prefer to coordinate on different actions. Players can pay cost learn their opponent’s group: if they it, condition actions concerning the groups. assess stability outcomes long run using stochastic analysis. find that three elements matter for equilibrium selection: group size, strength preferences, and information’s cost. If is too high, never opponents run. one stronger preferences its favorite action than other, or size sufficiently large compared other group, every player plays group’s action. both are strong enough none groups’ sizes enough, play miscoordinate inter-group interactions. Lower levels favor coordination. Indeed, when low, inside-group interactions, always action, while enough.