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Full-Text Articles in Social and Behavioral Sciences
Global Games: Theory And Applications, Stephen Morris, Hyun Song Shin
Global Games: Theory And Applications, Stephen Morris, Hyun Song Shin
Cowles Foundation Discussion Papers
Global games are games of incomplete information whose type space is determined by the players each observing a noisy signal of the underlying state. With strategic complementarities, global games often have a unique, dominance solvable equilibrium, allowing analysis of a number of economic models of coordination failure. For symmetric binary action global games, equilibrium strategies in the limit (as noise becomes negligible) are simple to characterize in terms of ‘diffuse’ beliefs over the actions of others. We describe a number of economic applications that fall in this category. We also explore the distinctive roles of public and private information in …
Global Games: Theory And Applications, Stephen Morris, Hyun Song Shin
Global Games: Theory And Applications, Stephen Morris, Hyun Song Shin
Cowles Foundation Discussion Papers
Global games are games of incomplete information whose type space is determined by the players each observing a noisy signal of the underlying state. With strategic complementarities, global games often have a unique, dominance solvable equilibrium, allowing analysis of a number of economic models of coordination failure. For symmetric binary action global games, equilibrium strategies in the limit (as noise becomes negligible) are simple to characterize in terms of ‘diffuse’ beliefs over the actions of others. We describe a number of economic applications that fall in this category. We also explore the distinctive roles of public and private information in …