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This chapter studies how incomplete information helps accommodate frictions in coordination, leading to novel insights on the joint determination of expectations and macroeconomic outcomes. We review and synthesize recent work on global games, beauty contests, and their applications. We...
Persistent link: https://www.econbiz.de/10011573121
This chapter studies how incomplete information helps accommodate frictions in coordination, leading to novel insights on the joint determination of expectations and macroeconomic outcomes. We review and synthesize recent work on global games, beauty contests, and their applications. We...
Persistent link: https://www.econbiz.de/10014024269
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Economic theory predicts that intertemporal decisions depend critically on expectations about future outcomes. Using …
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