A global game with strategic substitutes and complements
A global game with strategic substitutes and complements
We study a global game in which actions are strategic complements over some region and strategic substitutes over another region. An agent's payoff depends on a market fundamental and the actions of other agents. If the degree of congestion is sufficiently large, agents strategies are non-monotonic in their signal about the market fundamental. In this case, a signal that makes them believe that the market fundamental is more favorable for an action may make them less likely to take the action, because of the risk of overcrowding.
global games, congestion, coordination
Karp, Larry
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Lee, In Ho
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Mason, Robin
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2005
Karp, Larry
c0e2efad-f4e6-4fb9-9630-aaa8cf37b72e
Lee, In Ho
f9fa5dda-198f-4857-8fe5-82023a389d3c
Mason, Robin
c989f0e0-de54-495d-aeaf-75b42d62cb61
Karp, Larry, Lee, In Ho and Mason, Robin
(2005)
A global game with strategic substitutes and complements
USA.
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Monograph
(Working Paper)
Abstract
We study a global game in which actions are strategic complements over some region and strategic substitutes over another region. An agent's payoff depends on a market fundamental and the actions of other agents. If the degree of congestion is sufficiently large, agents strategies are non-monotonic in their signal about the market fundamental. In this case, a signal that makes them believe that the market fundamental is more favorable for an action may make them less likely to take the action, because of the risk of overcrowding.
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Published date: 2005
Keywords:
global games, congestion, coordination
Organisations:
Economics
Identifiers
Local EPrints ID: 35024
URI: http://eprints.soton.ac.uk/id/eprint/35024
PURE UUID: 28de5f6c-b8c6-4064-8d03-e32e07292ae2
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Date deposited: 16 May 2006
Last modified: 11 Dec 2021 15:26
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Contributors
Author:
Larry Karp
Author:
In Ho Lee
Author:
Robin Mason
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