On Coordinating Coordination Failures
نویسندگان
چکیده
This paper examines whether a principal with limited knowledge of agents’ actions can use an income tax scheme to uniquely implement the Pareto optimal equilibrium in a coordination game (i.e. a game with multiple Pareto-ranked equilibria). We show that, in contrast to games with externalities but a unique equilibrium, implementation in coordination games fails generically unless the identity of agents who are affected by the complementarities is public information.
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