This paper studies the institutional design of the coordination of macroeconomic stabilization policies within a monetary union in the framework of linear quadratic differential games. A central role in the analysis plays the partitioned game approach of the endogenous coalition formation...

This paper studies the institutional design of the coordination of macroeconomic stabilization policies within a monetary union in the framework of linear quadratic differential games. A central role in the analysis plays the partitioned game approach of the endogenous coalition formation...

One’s social identity tends to lead one to favor those belonging to one’s group; this ingroup bias may lead to problematic relationships. At the same time, communication has been found to have beneficial social consequences in controlled laboratory experiments. An important question is...