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Coordination on Saddle Path Solutions: the Eductive Viewpoint. 1- Linear Univariate Models

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Author Info

  • Evans, G.E.
  • Guesnerie, R.

Abstract

We investigate local strong rationality (LSR) in a one step forward looking univariate model with memory one. Eductive arguments are used to determine when common knowledge (CK) that the solution is near some perfect foresight path is sufficient to trigger complete coordination on that path (i.e. the path is LSR).

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Bibliographic Info

Paper provided by Laval - Laboratoire Econometrie in its series Papers with number 1999-15.

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Length: 25 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:lavale:1999-15

Contact details of provider:
Postal: Chaire d'economie et d'econometrie de l'assurance; DELTA; CREST; PARIS, France.

Related research

Keywords: ECONOMIC MODELS ; ECONOMETRICS ; MATHEMATICAL ANALYSIS;

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Cited by:
  1. Haomiao Yu, 2014. "Rationalizability in large games," Economic Theory, Springer, vol. 55(2), pages 457-479, February.
  2. Dennis, Richard & Kirsanova, Tatiana, 2010. "Expectations Traps and Coordination Failures: Selecting among Multiple Discretionary Equilibria," MPRA Paper 24616, University Library of Munich, Germany.
  3. repec:hal:wpaper:halshs-00587863 is not listed on IDEAS
  4. repec:hal:wpaper:halshs-00574957 is not listed on IDEAS
  5. Bai, Yuting & Kirsanova, Tatiana, 2013. "Infrequent Fiscal Stabilization," SIRE Discussion Papers 2013-17, Scottish Institute for Research in Economics (SIRE).
  6. Dennis, Richard & Kirsanova, Tatiana, 2013. "Expectations Traps and Coordination Failures with Discretionary Policymaking," SIRE Discussion Papers 2013-18, Scottish Institute for Research in Economics (SIRE).
  7. repec:hal:wpaper:halshs-00586749 is not listed on IDEAS
  8. Jara-Moroni, Pedro, 2012. "Rationalizability in games with a continuum of players," Games and Economic Behavior, Elsevier, vol. 75(2), pages 668-684.
  9. George W. Evans & Bruce McGough, 2003. "Monetary Policy, Indeterminacy and Learning," University of Oregon Economics Department Working Papers 2003-34, University of Oregon Economics Department, revised 01 Apr 2004.
  10. Mordecai Kurz, 2011. "Symposium: on the role of market belief in economic dynamics, an introduction," Economic Theory, Springer, vol. 47(2), pages 189-204, June.

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