Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5072998 | Games and Economic Behavior | 2007 | 21 Pages |
Abstract
We study a global game in which actions are strategic complements over some region and strategic substitutes over another region. An agent's payoff depends on a market fundamental and the actions of other agents. If the degree of congestion is sufficiently large, agents' strategies are non-monotonic in their signal about the market fundamental. In this case, a signal that makes them believe that the market fundamental is more favorable for an action may make them less likely to take the action, because of the risk of overcrowding.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Larry Karp, In Ho Lee, Robin Mason,