The role of money clearly stands up in a truly irreversible process of economic change, like the building up of an altogether new productive capacity. Money has an essential role in this process, although not in the usual sense of modifying the real equilibria of the economy. As a matter of fact...

Oligopolistic pricing decisions--in which the choice variable is not dichotomous, as in the simple prisoner's dilemma, but continuous--have been modeled as a generalized prisoner's dilemma (GPD) by Fader and Hauser, who sought, in the two MIT Computer Strategy Tournaments, to obtain an effective...

The paper argues that, even in the absence of bureaucratic inertia, the transition from one convention to a superior one can be blocked. Because of the self-reinforcing mechanism generated by coordination effects, the economy can be locked-in to a Pareto-inferior convention. In the framework of...