IDEAS home Printed from
   My bibliography  Save this paper

Expectational coordination in simple economic contexts: concepts and analysis with emphasis on strategic substitutabilities


  • Roger Guesnerie

    (CDF - Collège de France - CdF - Collège de France, PSE - Paris School of Economics, PJSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Pedro Jara-Moroni

    (Departamento de Economía - Universidad de Chile - USACH - Universidad de Santiago de Chile [Santiago])


We consider an economic model that features : 1. a continuum of agents 2. an aggregate state of the world over which agents have an infinitesimal influence. We first review the connections between the eductive viewpoint that puts emphasis for example on strongly rational expectations equilibrium and the standard game-theoretical rationalizability concepts. Besides the Cobweb tâtonnement outcomes, which mimic an eductive reasoning subject to homogenous expectations, we define, characterize (and prove the convexity of) the sets of rationalizable states and point-rationalizable states, which respectively incorporate heterogenous point-expectations and heterogenous stochastic expectations. In the case where our model displays strategic complementarities, we find unsurprisingly that all the eductive criteria under scrutiny support rather similar conclusions, particularly when the equilibrium is unique. With strategic susbstitutabilities, the success of expectational coordination, in the case where a unique equilibrium does exists, relates with the absence of cycles of order 2 of the Cobweb mapping : in this case, again, heterogenity of expectations does not matter. However, when cycles of order 2 do exist, our different criteria predict different set of outcomes, although all are tied with cycles of order 2. Under differentiability assumptions, the Poincaré-Hopf method leads to global results for strong rationality of equilibrium. At the local level, the different criteria under scrutiny can be adapted to the analysis of expectational coordination. They leads to the same stabilty conclusions, only when there are local strategic complementarities or strategic substitutabilities. However, so far as the analysis of local expectational coordination is concerned, it is argued and shown that the stochastic character of expectations can most often be forgotten.

Suggested Citation

  • Roger Guesnerie & Pedro Jara-Moroni, 2009. "Expectational coordination in simple economic contexts: concepts and analysis with emphasis on strategic substitutabilities," PSE Working Papers halshs-00574957, HAL.
  • Handle: RePEc:hal:psewpa:halshs-00574957
    Note: View the original document on HAL open archive server:

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Elchanan Ben-Porath & Aviad Heifetz, 2005. "Rationalizable Expectations," Economics Working Papers 0057, Institute for Advanced Study, School of Social Science.
    2. Jara-Moroni, Pedro, 2012. "Rationalizability in games with a continuum of players," Games and Economic Behavior, Elsevier, vol. 75(2), pages 668-684.
    3. Pedro Jara-Moroni, 2008. "Rationalizability in games with a continuum of players," Working Papers halshs-00587863, HAL.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:psewpa:halshs-00574957. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.