Dynamic Coordination with Timing Frictions: Theory and Applications

Bernardo Guimaraes, Caio Machado and Ana Elisa Pereira ()

No 502, Documentos de Trabajo from Instituto de Economia. Pontificia Universidad Católica de Chile.

Abstract: We start by presenting the general model of dynamic coordination with timing frictions and some key theoretical results. We prove the model features a unique rationalizable equilibrium, present a method to solve the social planner problem and derive expressions for the equilibrium threshold in limiting cases. With this toolkit in hand, we get analytical results for a case with linear preferences and present several applications, ranging from network externalities to statistical discrimination and to macroeconomics. Besides generating insights for specific questions, the applications illustrate the potential of the model to accommodate a large set of economic problems. Last, we show extensions of the framework that allow for endogenous hazard rates, preemption motives and ex-ante heterogeneous agents.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.economia.uc.cl/docs/doctra/dt_502.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (https://www.economia.uc.cl/docs/doctra/dt_502.pdf [301 Moved Permanently]--> https://economia.uc.cl/docs/doctra/dt_502.pdf)

Related works:
Journal Article: Dynamic coordination with timing frictions: Theory and applications (2020)
Working Paper: Dynamic coordination with timing frictions: theory and applications (2017)
Working Paper: Dynamic coordination with timing frictions: theory and applications (2017)
Working Paper: Dynamic coordination with timing frictions: theory and applications (2017)
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:ioe:doctra:502

Access Statistics for this paper

More papers in Documentos de Trabajo from Instituto de Economia. Pontificia Universidad Católica de Chile. Contact information at EDIRC.
Bibliographic data for series maintained by Jaime Casassus ().