Abstract
We study a dynamic coordination problem with staggered decisions where agents choose between two competing networks. If the intrinsically worst one prevails, this is efficient. Moreover, inefficient shifts to the intrinsically best network might occur in equilibrium.
Original language | English |
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Pages (from-to) | 819-825 |
Number of pages | 7 |
Journal | Journal of Economic Theory |
Volume | 163 |
DOIs | |
State | Published - 1 May 2016 |
Externally published | Yes |
Bibliographical note
Funding Information:We thank Luis Araujo, Braz Camargo, Itay Goldstein, Caio Machado, Daniel Monte, Jakub Steiner, the editor Alessandro Pavan and two anonymous referees for invaluable comments. Bernardo Guimaraes gratefully acknowledges financial support from CNPq . Ana Elisa Pereira gratefully acknowledges financial support from the Sao Paulo Research Foundation ( FAPESP ) through grants 2013/24368-7 and 2014/06069-5 .
Publisher Copyright:
© 2016 Elsevier Inc..
Keywords
- Coordination
- Dynamic games
- Networks
- Timing frictions