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Educational Spread as a ‘Coordination Game’ – Theory and Application to Portugal

Author

Listed:
  • José Pedro Pontes
  • João Dias

Abstract

This paper examines the recent evolution of higher education in Portugal under the light of an n-person coordination game. We feature two alternative coordination requirements, namely “unanimity”, which expresses a cooperative agreement, and “k-coordination”, which is driven by efficiency considerations. We find that public policy has driven higher education to fully cover the territory and in particular individuals living in sparsely populated areas. This orientation might have brought about a loss of scale economies in teaching and, consequently, in the efficiency of tertiary education. This is a plausible explanation for the disconnection between higher education spread and economic growth during the more recent period.

Suggested Citation

  • José Pedro Pontes & João Dias, 2024. "Educational Spread as a ‘Coordination Game’ – Theory and Application to Portugal," Working Papers REM 2024/0330, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
  • Handle: RePEc:ise:remwps:wp03302024
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    File URL: https://rem.rc.iseg.ulisboa.pt/wps/pdf/REM_WP_0330_2024.pdf
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    More about this item

    Keywords

    Education; Regional Development; Coordination Games; Risk Dominance.;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • I20 - Health, Education, and Welfare - - Education - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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