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QWERTY is efficient

Listed author(s):
  • Guimaraes, Bernardo
  • Pereira, Ana Elisa

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.

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File URL: http://www.sciencedirect.com/science/article/pii/S0022053116000429
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Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 163 (2016)
Issue (Month): C ()
Pages: 819-825

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Handle: RePEc:eee:jetheo:v:163:y:2016:i:c:p:819-825
DOI: 10.1016/j.jet.2016.03.008
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622869

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  10. Guimarães, Bernardo de Vasconcellos & Pereira, Ana Elisa Gonçalves, 2015. "Dynamic coordination among heterogeneous agents," Textos para discussão 380, FGV/EESP - Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
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  15. Zhiguo He & Wei Xiong, 2012. "Dynamic Debt Runs," Review of Financial Studies, Society for Financial Studies, vol. 25(6), pages 1799-1843.
  16. Guimaraes, Bernardo, 2006. "Dynamics of currency crises with asset market frictions," Journal of International Economics, Elsevier, vol. 68(1), pages 141-158, January.
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  19. Rossella Argenziano, 2008. "Differentiated networks: equilibrium and efficiency," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 747-769.
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