Dynamic coordination with timing frictions: Theory and applications

Bernardo Guimaraes, Caio Machado, Ana E. Pereira*

*Autor correspondiente de este trabajo

Resultado de la investigación: Contribución a una revistaArtículorevisión exhaustiva

4 Citas (Scopus)

Resumen

We present a general framework of dynamic coordination with timing frictions. A continuum of agents receive random chances to choose between two actions and remain locked in the selected action until their next opportunity to reoptimize. The instantaneous utility from each action depends on an exogenous fundamental that moves stochastically and on the mass of agents currently playing each action. Agents' decisions are strategic complements and history matters. We review some key theoretical results and show a general method to solve the social planner's problem. We then review applications of this framework to different economic problems: network externalities, statistical discrimination, and business cycles. The positive implications of these models are very similar, but the social planner's solution points to very different results for efficiency in each case. Last, we review extensions of the framework that allow for endogenous hazard rates and ex ante heterogeneous agents. © 2020 Wiley Periodicals, Inc.
Idioma originalInglés
Páginas (desde-hasta)656-697
Número de páginas42
PublicaciónJournal of Public Economic Theory
Volumen22
N.º3
DOI
EstadoPublicada - 1 jun. 2020

Nota bibliográfica

Publisher Copyright:
© 2020 Wiley Periodicals, Inc.

Huella

Profundice en los temas de investigación de 'Dynamic coordination with timing frictions: Theory and applications'. En conjunto forman una huella única.

Citar esto