Abstract
Abstract This paper introduces ex ante information heterogeneity between players into an otherwise standard global game so that both a type with superior private information and that with inferior private information coexist. We first derive the condition under which a unique threshold equilibrium exists. We then show that less-informed (resp. more-informed) players are more likely to attack the regime than more-informed (resp. less-informed) players when (i) the fundamental is perceived to be weak (resp. strong) according to the public signal and (ii) the cost of attack is low (resp. high). We finally derive the implication of our finding on optimal information allocation problem in the context of team production.
Published Version
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