Jiang, Ge and Weidenholzer, Simon (2014) Local Interactions and Switching Costs. UNSPECIFIED. UNSPECIFIED.
Jiang, Ge and Weidenholzer, Simon (2014) Local Interactions and Switching Costs. UNSPECIFIED. UNSPECIFIED.
Jiang, Ge and Weidenholzer, Simon (2014) Local Interactions and Switching Costs. UNSPECIFIED. UNSPECIFIED.
Abstract
We study the impact of switching costs on the long run outcome in 2 x 2 coordination games played in the circular city model of local interactions. For low levels of switching costs the predictions are in line with the previous literature and the risk dominant convention is the unique long run equilibrium. For intermediate levels of switching costs the set of long run equilibria still contains the risk dominant convention but may also contain conventions that are not risk dominant. For high levels of switching costs also non-monomorphic states will be included in the set of long run equilibria. Finally, we reconcile our result with a recent paper by Norman (2009) by considering the case of large interaction neighborhoods in large populations.
Item Type: | Monograph (UNSPECIFIED) |
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Uncontrolled Keywords: | HB;; Switching Costs; Local Interactions; Learning; Coordination Games |
Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 04 Apr 2014 15:08 |
Last Modified: | 15 Jan 2022 00:40 |
URI: | http://repository.essex.ac.uk/id/eprint/9015 |
Available files
Filename: dp746.pdf