In this paper I illustrate by an example that strictly dominated strategies may affect the process of the equilibrium selection in coordination games. The strategy profile that gets selected may be both Pareto and risk dominated. This distinguishes it from the examples provided in Ellison (2000)...

In this paper I illustrate by an example that strictly dominated strategies may affect the process of the equilibrium selection in coordination games. The strategy profile that gets selected may be both Pareto and risk dominated. This distinguishes it from the examples provided in Ellison (2000)...

Some recent contributions (Femminis, 2007 Nakamura, 2002) demonstrate the important roles of capital depreciation in the investment-uncertainty relationship. This paper highlights the role of symmetric adjustment costs in the case that capital depreciates completely after finite periods. Various...