Global games of regime change that is, coordination games of incomplete information in which a status quo is abandoned once a sufficiently large fraction of agents attacks it have been used to study crises phenomena such as currency attacks, bank runs, debt crises, and political change. We...

This paper examines the ability of a policy maker to control equilibrium outcomes in a global coordination game; applications include currency attacks, bank runs, and debt crises. A unique equilibrium is known to survive when the policy is exogenously fixed. We show that, by conveying...

We test the assumption that preferences are unchanged throughout a strategic game in the absence of feedback. To do so, we study the relationship between the strategic nature of a game and players' identification in social groups. We present evidence that the strategic nature of the game affects...

In this paper, we introduce the concept of payoff distortion in the standard prisoner’s dilemma game when strategies are driven by psychological behaviors. This concept enables to take account each player’s assessment of the other player’s behavior and the asymmetry of information. We...

Stag hunt and chicken games are canonical representations of two kinds of strategic interactions. In stag hunt, aggression feeds on itself, and mutual fear escalates into conflict. Chicken is a model of preemption and deterrence. With complete information, these games have multiple Nash...

Two decision-makers choose hawkish or dovish actions in a conflict game with incomplete information. The decision-making can be manipulated by "extremists" who send publicly observed cheap-talk messages. The power of extremists depends on the nature of the underlying conflict game. If actions...

We build a game-theoretic model where aggression can be triggered by domestic political concerns as well as the fear of being attacked. In the model, leaders of full and limited democracies risk losing power if they do not stand up to threats from abroad. In addition, the leader of a fully...

We consider a model of conformity that permits a non-conformist equilibrium and multiple conformist equilibria. Agents are assumed to behave according to a best reply learning dynamic. We details the conditions under which a social norm and conformity emerge. The emergence of conformity depends...

We consider a simple model that combines elements of search and social learning. Acting in sequence, and observing the action adopted by a previous agent, agents must search for an action. We explore why agent heterogeneity may increase expected payoffs and demonstrate that social learning may...

Global games of regime change – coordination games of incomplete information in which a status quo is abandoned once a sufficiently large fraction of agents attacks it – have been used to study crises phenomena such as currency attacks, bank runs, debt crises, and political change. We extend...