Sufficiently small definition
Sufficiently small for G means less than the expected ben- efit of adopting technology θ 2 relative to the existing technology,
Sufficiently small for G means less than the expected benefit of adopting technology θ2 rela- tive to the existing technology, which depends on speed and cost of the technologies as well as the principal’s prior, ρ2, that the technology is type θ2. If ρ2 is sufficiently low, then the principal will not pay G and the players will be back in the world of the first case, where their interests diverge and type θ2 will not be adopted. Again, if we assume players coordinate on the most informative subgame equilibria, then the Proposition-2 equilibrium is unique.
Sufficiently small for G means less than the expected benefit of adopting technology θ2 rela- tive to the existing technology, which depends on speed and cost of the technologies as well as the principal’s prior, ρ2, that the technology is type θ2. If ρ2 is sufficiently low, then the principal will
More Definitions of Sufficiently small
Sufficiently small here means that δ 0 is taken so that d z h xi δ, x i, z h xi, x i, z is increasing, as required by the assumption of the proposition. This “smallness” condition will be left implicit below.