Coordination of mobile labor

A-Tier
Journal: Journal of Economic Theory
Year: 2008
Volume: 139
Issue: 1
Pages: 25-46

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study coordination failures in many simultaneously occurring coordination problems. Players encounter one of the problems but have the outside option of migrating to one of the remaining ones. Drawing on the global games approach, we show that such a mobile game has a unique equilibrium that allows us to examine comparative statics. The endogeneity of the outside option value and of the migration activity leads to non-monotonicity of welfare with respect to mobility friction; high mobility may hurt players. We apply these "general equilibrium'' findings to the problem of the labor market during industrialization as described by Matsuyama [Increasing returns, industrialization and indeterminacy of equilibrium, Quart. J. Econ. 106 (1991) 617-650].

Technical Details

RePEc Handle
repec:eee:jetheo:v:139:y:2008:i:1:p:25-46
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29