Monetary policy affects the degree of strategic complementarity in firms pricing decisions if it responds to the aggregate price level. In normal times, when monopolistic competitive firms increase their prices, the central bank raises interest rates, which lowers consumption demand and creates...

It is commonly assumed that friendship should decrease strategic uncertainty in games involving tacit coordination. However, this has never been tested on two "opposite poles" of coordination, namely, games of strategic complements and substitutes. We present an experimental study having...

Friendship is commonly assumed to reduce strategic uncertainty and enhance tacit coordination. However, this assumption has never been tested across two opposite poles of coordination involving either strategic complementarity or substitutability. We had participants interact with friends or...

It is commonly assumed that friendship should generally benefit agents' ability to tacitly coordinate with others. However, this has never been tested on two "opposite poles" of coordination, namely, games of strategic complements and substitutes. We present an experimental study in which...