EconPapers    
Economics at your fingertips  
 

Sequential Coordination, Higher-Order Belief Dynamics and E-Stability Principle

Gaetano Gaballo

Working papers from Banque de France

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 case of strategic substitutability, but not in 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.

Keywords: eductive learning; rational expectation equilibria; rationalizable set; learning in macroeconomics; coordination games. (search for similar items in EconPapers)
JEL-codes: B41 D41 E30 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2014
New Economics Papers: this item is included in nep-gth, nep-mac and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://publications.banque-france.fr/sites/defaul ... g-paper_509_2014.pdf (application/pdf)

Related works:
Journal Article: Sequential coordination, higher-order belief dynamics and the E-stability principle (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:509

Access Statistics for this paper

More papers in Working papers from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().

 
Page updated 2025-03-22
Handle: RePEc:bfr:banfra:509