Resource title

Information, coordination, and the industrialization of countries

Resource image

image for OpenScout resource :: Information, coordination, and the industrialization of countries

Resource description

The industrialization process of a country is often plagued by a failure to coordinate investment decisions. Using the Global Games approach we can solve this coordination problem and eliminate the problem of multiple equilibria. We show how appropriate information provision enhances efficiency. We discuss extensions of the model and argue that subsidies may be a property of a signalling equilibrium to overcome credibility problems in information provision. In addition we point out possible problems with overreaction to public information. Furthermore, we suggest a new focus for development policy.

Resource author

Florian Englmaier, Markus Reisinger

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19134

Resource license

Adapt according to the presented license agreement and reference the original author.