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Complementarities and Macroeconomics: Poisson Games

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  • Miltiadis Makris

    (Department of Economics, University of Exeter, CMPO, University of Bristol and IMOP, Athens University of Economics and Business)

Abstract

In many situations in macroeconomics strategic complementarities arise, and agents face a coordination problem. An important issue, from both a theoretical and a policy perspective, is equilibrium uniqueness. We contribute to this literature by focusing on the macroeconomic aspect of the problem: the number of potential innovators, speculators e.t.c. is large. In particular, we follow Myerson (1998, 2000) that in large games “a more realistic model should admit some uncertainty about the number of players in the game”. In more detail, we model the coordination problem as a Poisson game, and investigate the conditions under which unique equilibrium selection is obtained.

Suggested Citation

  • Miltiadis Makris, 2006. "Complementarities and Macroeconomics: Poisson Games," Discussion Papers 0602, Exeter University, Department of Economics.
  • Handle: RePEc:exe:wpaper:0602
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    File URL: http://people.exeter.ac.uk/cc371/RePEc/dpapers/DP0602.pdf
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    References listed on IDEAS

    as
    1. David Frankel & Ady Pauzner, 2000. "Resolving Indeterminacy in Dynamic Settings: The Role of Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 115(1), pages 285-304.
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    8. Roger B. Myerson, 1998. "Population uncertainty and Poisson games," International Journal of Game Theory, Springer;Game Theory Society, vol. 27(3), pages 375-392.
    9. Myerson, Roger B., 2000. "Large Poisson Games," Journal of Economic Theory, Elsevier, vol. 94(1), pages 7-45, September.
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    11. Cooper,Russell, 1999. "Coordination Games," Cambridge Books, Cambridge University Press, number 9780521578967, May.
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    13. Mason, Robin & Valentinyi, Akos, 2003. "Independence and heterogeneity in games of incomplete information," Discussion Paper Series In Economics And Econometrics 0307, Economics Division, School of Social Sciences, University of Southampton.
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    Cited by:

    1. repec:spr:dyngam:v:7:y:2017:i:3:d:10.1007_s13235-016-0197-z is not listed on IDEAS
    2. Meroni, Claudia & Pimienta, Carlos, 2017. "The structure of Nash equilibria in Poisson games," Journal of Economic Theory, Elsevier, vol. 169(C), pages 128-144.
    3. Drugov, Mikhail & Ryvkin, Dmitry, 2017. "Winner-Take-All Tournaments," CEPR Discussion Papers 12067, C.E.P.R. Discussion Papers.
    4. Adrian Hillenbrand & Fabian Winter, 2017. "Volunteering under Population Uncertainty," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2017_12, Max Planck Institute for Research on Collective Goods.
    5. Boosey, Luke & Brookins, Philip & Ryvkin, Dmitry, 2017. "Contests with group size uncertainty: Experimental evidence," Games and Economic Behavior, Elsevier, vol. 105(C), pages 212-229.
    6. De Sinopoli, Francesco & Meroni, Claudia & Pimienta, Carlos, 2014. "Strategic stability in Poisson games," Journal of Economic Theory, Elsevier, vol. 153(C), pages 46-63.
    7. Luke Boosey & Philip Brookins & Dmitry Ryvkin, 2017. "Contests between groups of unknown size," Working Papers wp2017_03_01, Department of Economics, Florida State University.
    8. Pierre Bernhard & Marc Deschamps, 2017. "On Dynamic Games with Randomly Arriving Players," Dynamic Games and Applications, Springer, vol. 7(3), pages 360-385, September.
    9. Ioannou, Christos A. & Makris, Miltiadis, 2017. "An experimental investigation of Poisson Coordination games," Discussion Paper Series In Economics And Econometrics 1506, Economics Division, School of Social Sciences, University of Southampton.
    10. Dmitry Ryvkin & Mikhail Drugov, 2017. "Tournaments," Working Papers wp2017_03_02, Department of Economics, Florida State University.
    11. De Sinopoli, Francesco & Pimienta, Carlos, 2009. "Undominated (and) perfect equilibria in Poisson games," Games and Economic Behavior, Elsevier, vol. 66(2), pages 775-784, July.
    12. repec:stn:sotoec:1401 is not listed on IDEAS
    13. Makris, Miltiadis, 2009. "Private provision of discrete public goods," Games and Economic Behavior, Elsevier, vol. 67(1), pages 292-299, September.

    More about this item

    Keywords

    Strategic Complementarities; Coordination Games; Poisson Games; Currency Crises; Innovation.;

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other

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