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Complementarities and macroeconomics: Poisson games

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  • Makris, Miltiadis

Abstract

In many situations in macroeconomics strategic complementarities arise, and agents face a coordination problem. An important issue, from both a theoretical and a policy perspective, is equilibrium uniqueness. We contribute to this literature by focusing on the macroeconomic aspect of the problem: the number of potential innovators, speculators e.t.c. is large. In particular, we follow Myerson (1998, 2000) that in large games “a more realistic model should admit some uncertainty about the number of players in the game”. In more detail, we model the coordination problem as a Poisson game, and investigate the conditions under which unique equilibrium selection is obtained.
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  • Makris, Miltiadis, 2008. "Complementarities and macroeconomics: Poisson games," Games and Economic Behavior, Elsevier, vol. 62(1), pages 180-189, January.
    • Handle: RePEc:eee:gamebe:v:62:y:2008:i:1:p:180-189
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    7. Burdzy, Krzysztof & Frankel, David M & Pauzner, Ady, 2001. "Fast Equilibrium Selection by Rational Players Living in a Changing World," Econometrica, Econometric Society, vol. 69(1), pages 163-189, January.
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    13. In-Ho Lee & Robin Mason, 2002. "Coordination in the static and the dynamic," Levine's Working Paper Archive 391749000000000503, David K. Levine.
    14. Valentinyi, Akos & Mason, Robin, 2004. "Independence and Heterogeneity in Games of Incomplete Information," CEPR Discussion Papers 4177, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Meroni, Claudia & Pimienta, Carlos, 2017. "The structure of Nash equilibria in Poisson games," Journal of Economic Theory, Elsevier, vol. 169(C), pages 128-144.
    2. De Sinopoli, Francesco & Meroni, Claudia & Pimienta, Carlos, 2014. "Strategic stability in Poisson games," Journal of Economic Theory, Elsevier, vol. 153(C), pages 46-63.
    3. Pierre Bernhard & Marc Deschamps, 2017. "On Dynamic Games with Randomly Arriving Players," Dynamic Games and Applications, Springer, vol. 7(3), pages 360-385, September.
    4. Boosey, Luke & Brookins, Philip & Ryvkin, Dmitry, 2019. "Contests between groups of unknown size," Games and Economic Behavior, Elsevier, vol. 113(C), pages 756-769.
    5. Mikhail Drugov & Dmitry Ryvkin, 2019. "The shape of luck and competition in tournaments," Working Papers w0251, New Economic School (NES).
    6. Ioannou, Christos A. & Makris, Miltiadis, 2017. "An experimental investigation of Poisson Coordination games," Discussion Paper Series In Economics And Econometrics 1506, Economics Division, School of Social Sciences, University of Southampton.
    7. Ryvkin, Dmitry & Drugov, Mikhail, 2020. "The shape of luck and competition in winner-take-all tournaments," Theoretical Economics, Econometric Society, vol. 15(4), November.
    8. De Sinopoli, Francesco & Ferraris, Leo & Meroni, Claudia, 2024. "Poisson Search," Journal of Mathematical Economics, Elsevier, vol. 112(C).
    9. Francesco De Sinopoli & Claudia Meroni, 2019. "Poisson voting games: proportional rule," Working Papers 11/2019, University of Verona, Department of Economics.
    10. Christos A. Ioannou & Miltiadis Makris, 2019. "An Experimental Study Of Uncertainty In Coordination Games," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(2), pages 751-799, May.
    11. Francesco De Sinopoli & Leo Ferraris & Claudia Meroni, 2024. "Group size as selection device," Working Papers 533, University of Milano-Bicocca, Department of Economics.
    12. Boosey, Luke & Brookins, Philip & Ryvkin, Dmitry, 2017. "Contests with group size uncertainty: Experimental evidence," Games and Economic Behavior, Elsevier, vol. 105(C), pages 212-229.
    13. Dmitry Ryvkin & Mikhail Drugov, 2017. "Tournaments," Working Papers wp2017_03_02, Department of Economics, Florida State University.
    14. De Sinopoli, Francesco & Pimienta, Carlos, 2009. "Undominated (and) perfect equilibria in Poisson games," Games and Economic Behavior, Elsevier, vol. 66(2), pages 775-784, July.
    15. Hillenbrand, Adrian & Winter, Fabian, 2018. "Volunteering under population uncertainty," Games and Economic Behavior, Elsevier, vol. 109(C), pages 65-81.
    16. Francesco De Sinopoli & Claudia Meroni, 2022. "Poisson voting games under proportional rule," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(3), pages 507-526, April.
    17. Adrian Hillenbrand & Tobias Werner & Fabian Winter, 2020. "Volunteering at the Workplace under Incomplete Information: Teamsize Does Not Matter," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2020_04, Max Planck Institute for Research on Collective Goods.
    18. repec:stn:sotoec:1401 is not listed on IDEAS
    19. Makris, Miltiadis, 2009. "Private provision of discrete public goods," Games and Economic Behavior, Elsevier, vol. 67(1), pages 292-299, September.
    20. Drugov, Mikhail & Ryvkin, Dmitry, 2017. "Winner-Take-All Tournaments," CEPR Discussion Papers 12067, C.E.P.R. Discussion Papers.
    21. Werner, Tobias & Hillenbrand, Adrian & Winter, Fabian, 2020. "Volunteering at the Workplace under Incomplete Information: Team Size Does Not Matter," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224519, Verein für Socialpolitik / German Economic Association.

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    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other

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