Coordination Game: Complementarity and Macroeconomics

Author: Cooper
Publisher:
Publish Date: 2002-03-01
Features: This is a book on advanced macroeconomics. But it is not a traditional Keynesian economics book; rather, it is a book on game theory. It focuses on the "complementarity" of macroeconomics and its implications for aggregate economy (macro), so it remains a macroeconomic economics book. At the same time, the author uses the method of game theory, and the language is also that of game theory, and it discusses the theory and application of "coordination games." The book is not very long. The first part explains the basic concepts and analytical framework of complementarity and discusses various outcomes and experimental evidence of coordination games. The second part can be seen as an extension and application analysis of the theory. The author applies the ideas and methods of complementarity or coordination games to the analysis of aggregate macroeconomic activity and its consequences. The theoretical models used include production complementarity, search models, monopolistic competition markets, timing models, lag models, etc. The aggregate issues analyzed cover the main content of macroeconomics, such as economic fluctuations, depressions, money and exchange, savings and consumption, innovation and invention, as well as government policies, etc. For readers who have mastered the basic concepts of macroeconomics and have preliminary knowledge of game theory, reading this book is quite valuable for understanding the microfoundations of aggregate macroeconomic activity. Small internal or external changes often cause "overshooting" in the real economy, and the field of macroeconomic complementarity specifically examines the causes and mechanisms of this "overshooting." Professor Cooper is the absolute authority in this field. This book studies the impact of macroeconomic complementarity on overall behavior, covering the basic framework of complementarity, discussing the experimental results of coordination games, and further exploring the application of these concepts in macroeconomics, including production complementarity, search models, monopolistic competition product markets, timing and delay models, as well as the role of government in solving coordination problems, and connecting related fields through these models. This book is one of the essential reads for senior undergraduate and graduate students in economics to understand the latest frontiers in macroeconomics.