Global game

Global game

In economics and game theory, global games are games of incomplete information where players receive possibly-correlated signals of the underlying state of the world. Global games were originally defined by Carlsson and van Damme (1993). The most important practical application of global games has been the study of crises in financial markets such as bank runs, currency crises, and bubbles .

References

* [http://cowles.econ.yale.edu/P/cd/d12b/d1275-r.pdf Stephen Morris & Hyun S Shin, 2001. "Global Games: Theory and Applications."]
*Hans Carlsson and Eric van Damme, 1993. "Global Games and Equilibrium Selection." Econometrica 61 (5), pp. 989-1018.


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