that induces better outcomes through creating correct incentives for market participants is the key to reform. A … national and global coordination of regulators is also required. Global prudential standards can push financial firms to choose …

implement temporary, flat, all-or-none incentives to encourage coordination on more efficient equilibria. We vary whether the …). Overall, incentives of all kinds are effective at improving coordination while they are in place, and we find that substantial …, are stuck in bad equilibria, managers may turn to the temporary use of simple incentives - flat punishments or rewards …

financial incentives for coordination, which typically leads to coordination failure, and then are switched to higher incentives … or start with high incentives, which usually yield effective coordination, and are switched to low incentives. Second, as … coordination failure, and (3) History-dependence, defined as dependence of current effort levels on past incentives, is …