Friction and the Multiplicity of Equilibria
| dc.creator | Karp, Larry S. | |
| dc.creator | Paul, Thierry | |
| dc.date | 2017-04-01T17:03:23Z | |
| dc.date.accessioned | 2026-07-09T03:49:46Z | |
| dc.description | In familiar models, a decrease in the friction facing mobile factors (e.g., lowering their adjustment costs) increases a coordination problem, leading to more circumstances where there are multiple equilibria. We show that a decrease in friction can decrease coordination problems if, for example, a production externality arises from a changing stock of knowledge or a changing environmental stock. In general, the relation between the amount of friction that mobile factors face and the likelihood of multiple equilibria is non-monotonic. | |
| dc.identifier | doi:10.22004/ag.econ.25120 | |
| dc.identifier | https://ageconsearch.umn.edu/record/25120/files/wp050960.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/25120 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/540535 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/25120 | |
| dc.title | Friction and the Multiplicity of Equilibria | |
| dc.type | Text |