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Equilibria in a Dynamic Global Game: The Role of Cohort Effects

Heidhues, Paul; Melissas, Nicolas - C.E.P.R. Discussion Papers - 2005

We introduce strategic waiting in a global game setting with irreversible investment. Players can wait in order to make a better informed decision. We allow for cohort effects and discuss when they arise endogenously in technology adoption problems with positive contemporaneous network effects....

Persistent link: https://www.econbiz.de/10005666707

Strategic Experimentation and Disruptive Technological Change

Schivardi, Fabiano; Schneider, Martin - C.E.P.R. Discussion Papers - 2005

This paper studies the diffusion of a new technology that is brought to market while its potential is still uncertain. We consider a dynamic game in which firms improve both a new and a rival old technology while learning about the relative potential of both technologies. We use the model to...

Persistent link: https://www.econbiz.de/10005504449

A Dynamic Quality Ladder Model with Entry and Exit: Exploring the Equilibrium Correspondence Using the Homotopy Method

Borkovsky, Ron N.; Doraszelski, Ulrich; Kryukov, Yaroslav - C.E.P.R. Discussion Papers - 2009

This paper explores the equilibrium correspondence of a dynamic quality ladder model with entry and exit using the homotopy method. The homotopy method facilitates exploring the equilibrium correspondence in a systematic fashion; it is ideally suited for investigating the economic phenomena that...

Persistent link: https://www.econbiz.de/10008558580

Finite State Dynamic Games with Asymmetric Information: A Framework for Applied Work

Fershtman, Chaim; Pakes, Ariel - C.E.P.R. Discussion Papers - 2009

With applied work in mind, we define an equilibrium notion for dynamic games with asymmetric information which does not require a specification for players' beliefs about their opponent types. This enables us to define equilibrium conditions which, at least in principal, are testable and can be...

Persistent link: https://www.econbiz.de/10005016241

Finite State Dynamic Games with Asymmetric Information: A Framework for Applied Work

Fershtman, Chaim; Pakes, Ariel - C.E.P.R. Discussion Papers - 2005

We present a framework for the applied analysis of dynamic games with asymmetric information. The framework consists of a definition of equilibrium, and an algorithm to compute it. Our definition of Applied Markov Perfect equilibrium is an extension of the definition of Markov Perfect...

Persistent link: https://www.econbiz.de/10005791237

A User's Guide to Solving Dynamic Stochastic Games Using the Homotopy Method

Borkovsky, Ron N.; Doraszelski, Ulrich; Kryukov, Yaroslav - C.E.P.R. Discussion Papers - 2008

This paper provides a step-by-step guide to solving dynamic stochastic games using the homotopy method. The homotopy method facilitates exploring the equilibrium correspondence in a systematic fashion; it is especially useful in games that have multiple equilibria. We discuss the theory of the...

Persistent link: https://www.econbiz.de/10005123933

Consumption Externalities, Coordination and Advertising

Pastine, Ivan; Pastine, Tuvana - C.E.P.R. Discussion Papers - 2001

The aim of this Paper is to demonstrate that advertising can have an important function in markets with consumption externalities, apart from its persuasive and informative roles. We show that advertising may function as a device to coordinate consumer expectations of the purchasing decisions of...

Persistent link: https://www.econbiz.de/10005114320

Urban Spatial Structure, Employment and Social Ties

Picard, Pierre M; Zenou, Yves - C.E.P.R. Discussion Papers - 2014

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group resides close to the job center while the minority group lives far away from it. Even though the...

Persistent link: https://www.econbiz.de/10011084238

Spatial Mismatch: From the Hypothesis to the Theories

Gobillon, Laurent; Selod, Harris; Zenou, Yves - C.E.P.R. Discussion Papers - 2003

Since the 1950s, there has been a steady decentralization of entry-level jobs towards the suburbs of American cities, while racial minorities — and particularly blacks — have remained in city centres. In this context, the spatial mismatch hypothesis argues that because the residential...

Persistent link: https://www.econbiz.de/10005661813

Segregation and the Quality of Government in a Cross-Section of Countries

Alesina, Alberto F; Zhuravskaya, Ekaterina - C.E.P.R. Discussion Papers - 2008

us to measure segregation of different ethnic, religious and linguistic groups within the same country. The second goal … is to correlate measures of segregation with measures of quality of the polity and policymaking. The third is to … no relationship between religious segregation and the government quality. …

Persistent link: https://www.econbiz.de/10005666927