We take a coordination game and add the option to wait; each player can opt to take an action in the standard game or they can decide to wait. If one player has taken a standard option, the waiting player can adopt their best response to this action. Interpreting the payoffin the final period (when there is no waiting possible) as a outside option or default, we show that a party's equilibrium payoffcan be decreasing in their default. Further, a player's role of leader or follower alternates as the number of waiting periods changes.
|Publication status||Published - 2005|