Sequential coordination, higher-order belief dynamics and the E-stability principle

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2014
Volume: 44
Issue: C
Pages: 270-279

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

This paper explores convergence in higher-order beliefs – otherwise called eductive stability – when coordination is sequential, that is, when each agent of a given type fixes his own actions after observing the ones of earlier types in a given order. The presence of sequential types enhances expectational coordination in the case of strategic substitutability, but not in the case of strategic complementarity. In particular, eductive stability can be obtained for any degree of substitutability, provided the number of sequential types is large enough. Therefore, sequential coordination opens up to the possibility that eductive convergence occurs at the same conditions of adaptive convergence, in accordance to the E-stability principle.

Technical Details

RePEc Handle
repec:eee:dyncon:v:44:y:2014:i:c:p:270-279
Journal Field
Macro
Author Count
1
Added to Database
2026-01-25