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Coordination in a changing environment

Research output: Contribution to journalJournal article

Published
<mark>Journal publication date</mark>04/2015
<mark>Journal</mark>Journal of Economic Behavior and Organization
Volume112
Number of pages21
Pages (from-to)64-84
Publication statusPublished
Early online date5/01/15
Original languageEnglish

Abstract

In this article we consider a model where boundedly rational agents choose both which coordination game to play and what action to take in that game, when their information and mobility are limited and changes over time. We completely characterize both short-run and long-run outcomes. There are multiple types of short-run predictions in which agents may be at different locations, taking different actions. In the long-run, however, all agents are at the same location and take the same action in that game. The long-run prediction is unique and globally efficient most of the time.