Keynote Presentation - Equilibrium Selection: A Unified Approach - Dave Frankel
Tracks
Room CBE LT3
Friday, June 30, 2023 |
11:30 AM - 12:25 PM |
Speaker
Prof David Frankel
Professor of Financial Economics
Melbourne Business School
Equilibrium Selection: A Unified Approach
Abstract
In many applied settings, a group of agents decide whether to participate in an activity that requires a critical mass of participants to be worthwhile. This property can give rise to multiple equilibria. Existing equilibrium selection results typically rely on strong payoff assumptions. We replace these with a weak single crossing property and show that the predictions have a common form: an agent plays a best response to some fictional distribution of the participation rate of her opponents. An application to equity crowdfunding is studied.
Biography
David Frankel earned his PhD from M.I.T. in 1993 and is currently a Professor of Financial Economics at Melbourne Business School, where he teaches Financial Institutions and Global Business Economics. He has held tenure track positions at Tel Aviv University and Iowa State University, and visiting positions at Cornell, Stanford, and Hebrew University.