Ambiguity and perceived coordination in a global game

Journal article: In a global game, larger ambiguity is shown to decrease the amount of coordination each player perceives. Consequently, small uncertainty tends to select the Pareto dominated equilibrium of the game without uncertainty. Implications for models of financial crises are drawn.

Author(s)

Daniel Laskar

Journal
  • Economics Letters
Date of publication
  • 2014
Pages
  • 317-320
Version
  • 1
Volume
  • 122