Coordinating Thoughts on Coordination Failures

Research output: Chapter in Book/Report/Conference proceedingChapterAcademic


Coordination failures constitute an alternative explanation for underemployment that complements the Keynesian and neo-classical views. The paper proposes to distinguish three classes of models with coordination failures. The classes are formed by strategic models with or without a coordinating role for prices, and general equilibrium models. The main insights resulting for each class of models are exhibited. It is argued that coordination failures are likely to arise in a decentralized economy, even under conditions where perfect competition could prevail. The paper concludes by pointing out several promising directions for future research.
Original languageEnglish
Title of host publicationEquilibrium, Markets and Dynamics
Subtitle of host publicationEssays in Honour of Claus Weddepohl
EditorsC.H. Hommes, R. Ramer, C.A. Withagen
Place of PublicationBerlin-Heidelberg-New York
PublisherSpringer Verlag
Number of pages6
ISBN (Electronic)978-3-642-56131-3
ISBN (Print)978-3-540-43470-2, 978-3-642-62820-7
Publication statusPublished - 1 Jan 2002

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