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Location, Information and Coordination

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  • Alexander Matros

Abstract

In this paper, we consider K finite populations of boundedly rational agents whose preferences and information differ. Each period agents are randomly paired to play some coordination games. We show that several ``special`` (fixed) agents lead the coordination. In a mistake-free environment, all connected fixed agents have to coordinate on the same strategy. In the long run, as the probability of mistakes goes to zero, all agents coordinate on the same strategy. The long-run outcome is unique, if all fixed agents belong to the same population.

Suggested Citation

  • Alexander Matros, 2006. "Location, Information and Coordination," Working Paper 307, Department of Economics, University of Pittsburgh, revised May 2007.
    • Handle: RePEc:pit:wpaper:307
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