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sunspots. There is a group of players wishing to coordinate on the same action and another player, the regime defender, whose … sunspots, combined with the action of the regime defender, can be used to derive a unique coordination probability in any … equilibrium where sunspots influence actions. I show how this approach can be used to determine the probability of a sunspot …
Persistent link: https://www.econbiz.de/10014520855
In the model, a group of investors are invited to participate to a high-yield collective project. The project succeeds only if a minimum participation rate is reached. Before taking their decision, investors receive a vague statement about the outcome of a past investment decision. If investors...
Persistent link: https://www.econbiz.de/10010891614
The main objective of this paper is to present a reading of The Arcades Project by Walter Benjamin in the context of the financial crisis, in particular, reflect from a few fragments of Benjamin's work appear to lie around a Black Swan. The recovery of the fragments of The Arcades seems...
Persistent link: https://www.econbiz.de/10008622248
Gambling is an ancient human activity with a prevalent position nowadays both as a social entertainment activity and as a way to gain money effortless. Every country has its specific pattern in gambling determined both by its cultural and macroeconomic determinants and by its national regulatory...
Persistent link: https://www.econbiz.de/10011188975
Persistent link: https://www.econbiz.de/10012265092
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 paper presents an experiment on a coordination game with extrinsic random signals, in which we systematically vary the stochastic process generating these signals and measure how signals affect behavior. We find that sunspot equilibria emerge naturally if there are salient public signals....
Persistent link: https://www.econbiz.de/10011596121
Persistent link: https://www.econbiz.de/10012149673
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
We examine behavior in one-shot appropriation games with deterministic and probabilistic degradation externalities, where the marginal net benefit from appropriation is endogenous, dependent on individuals' expectations of group appropriation. The experimental design involves a menu of games...
Persistent link: https://www.econbiz.de/10011382713