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Global games of regime change – coordination games of incomplete information in which a status quo is abandoned once a … ; coordination ; multiple equilibria ; information dynamics ; crises …
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experiment, while coordination failures emerge in the following periods sweeping away the beneficial effect of communication at …
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egocentric instead. Our results contribute to the understanding of coordination dynamics resting on heterogeneity and co …
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We choose between alternatives without being fully informed about the rewards from different courses of action. In making our decisions, we use our own past experience and the experience of others. So the ways in which we interact - our social network - can influence our choices. These choices...
Persistent link: https://www.econbiz.de/10014025688
This paper shows how expectations-driven contagion of currency crises can arise even if the currency market has a unique equilibrium when viewed in isolation. The model of Morris and Shin (1998) is extended to allow speculators to trade in a second currency market. If speculators believe that a...
Persistent link: https://www.econbiz.de/10005051284