Coordination games and regional economic transitions

Abstract

ABSTRACT This study proposes a systematic approach to detecting and analysing coordination and/or coordination failure in regional environments. Specifically, it proposes leveraging the logic of the coordination game known as the Stag Hunt to infer whether levels of cynicism, distrust, poor communication and a lack of leadership are anchoring a region in poverty and inhibiting the transition to a more solvent and competitive economy. An application to the Mahoning Valley region in the United States highlights the many benefits of this approach as well as opportunities for future research.