arXiv subjects

Dominik Grafenhofer

Publications and source records attributed to Dominik Grafenhofer.

3 recordsLinked to original sources

arXiv2021

Observing Actions in Global Games

We study Bayesian coordination games where agents receive noisy private information over the game's payoffs, and over each others' actions. If private information over actions is of low quality, equilibrium uniqueness obtains in a manner similar to a global games setting. On the contrary, if private information over actions (and thus over the game's payoff coefficient) is precise, agents can coordinate on multiple equilibria. We argue that our results apply to phenomena such as bank-runs, currency crises, recessions, or riots and revolutions, where agents monitor each other closely.

econ.GN↗

arXiv2019

Observing Actions in Bayesian Games

We study Bayesian coordination games where agents receive noisy private information over the game's payoff structure, and over each others' actions. If private information over actions is precise, we find that agents can coordinate on multiple equilibria. If private information over actions is of low quality, equilibrium uniqueness obtains like in a standard global games setting. The current model, with its flexible information structure, can thus be used to study phenomena such as bank-runs, currency crises, recessions, riots, and revolutions, where agents rely on information over each others' actions.

econ.GN↗

arXiv2014

Observing Each Other's Observations in the Electronic Mail Game

We study a Bayesian coordination game where agents receive private information on the game's payoff structure. In addition, agents receive private signals on each other's private information. We show that once agents possess these different types of information, there exists a coordination game in the evaluation of this information. And even though the precisions of both signal types is exogenous, the precision with which agents predict each other's actions at equilibrium turns out to be endogenous. As a consequence, we find that there exist multiple equilibria if the private signals' precision is high. These equilibria differ with regard to the way that agents weight their private information to reason about each other's actions.

econ.GN↗