0384730 - EKÚ 2013 RIV US eng J - Journal Article
Sákovics, J. - Steiner, Jakub
Who matters in coordination problems?
American Economic Review. Roč. 102, č. 7 (2012), s. 3439-3461. ISSN 0002-8282. E-ISSN 1944-7981
Institutional support: RVO:67985998
Keywords : coordination problems * heterogeneous agents
Subject RIV: AH - Economics
Impact factor: 2.792, year: 2012 ; AIS: 5.65, rok: 2012
DOI: https://doi.org/10.1257/aer.102.7.3439

Agents face a coordination problem akin to the adoption of a network technology. A principal announces investment subsidies that, at minimal cost, attain a given likelihood of successful coordination. Optimal subsidies target agents who impose high externalities on others and on whom others impose low externalities. Based on the analysis of the role of strategic uncertainty in coordination processes, we provide a methodology that can be used to find the optimal targets for a variety of interventions in a large class of coordination problems with heterogeneous agents.
Permanent Link: http://hdl.handle.net/11104/0080997