Sequential Learning

Yair Antler*, Daniel Bird, Santiago Oliveros

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


We develop a model in which two players sequentially and publicly examine a project. In our model the player who moves first can fabricate evidence to influence the second mover, which creates a moral hazard problem. We find that early strategic uncertainty can mitigate this problem. In particular, for intermediate prior beliefs about the project’s quality, the Pareto-dominant equilibrium is in mixed strategies and consists of an early stage in which evidence may be fabricated and a later stage in which evidence is always authentic. Our findings shed light on the dynamics of R&D, quality assurance, and drug approval.

Original languageEnglish
Pages (from-to)399-433
Number of pages35
JournalAmerican Economic Journal: Microeconomics
Issue number1
StatePublished - 2023


Dive into the research topics of 'Sequential Learning'. Together they form a unique fingerprint.

Cite this