Selection-free predictions in global games with endogenous information and multiple equilibria

• 成果类型: Article
• 署名作者: Angeletos, George-Marios; Pavan, Alessandro
• 署名单位: Massachusetts Institute of Technology (MIT); University of Zurich; Northwestern University
• 刊物名称: THEORETICAL ECONOMICS
• ISSN/ISSBN: 1933-6837
• DOI: 10.3982/TE1156
• 发表日期: 2013-09-01
• 页码: 883-938
• 关键词: Global games; multiple equilibria; endogenous information; robust predictions

摘要

Global games with endogenous information often exhibit multiple equilibria. In this paper, we show how one can nevertheless identify useful predictions that are robust across all equilibria and that cannot be delivered in the common-knowledge counterparts of these games. Our analysis is conducted within a flexible family of games of regime change, which have been used to model, inter alia, speculative currency attacks, debt crises, and political change. The endogeneity of information originates in the signaling role of policy choices. A novel procedure of iterated elimination of nonequilibrium strategies is used to deliver probabilistic predictions that an outside observer-an econometrician-can form under arbitrary equilibrium selections. The sharpness of these predictions improves as the noise gets smaller, but disappears in the complete-information version of the model.