Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86884
Authors: 
Swank, Otto H.
Visser, Bauke
Year of Publication: 
2010
Series/Report no.: 
Tinbergen Institute Discussion Paper 10-034/1
Abstract: 
We study two aspects of globalization. It allows a decision-maker to go beyond his own local experience and to learn from other decision-makers in addressing common problems. This improves the identification and diffusion of best practices. It also provides extra information to `markets' that evaluate decision-makers: comparisons become possible. We identify conditions under which the globalization of markets helps or hurts (i) the communication among decision-makers about their own experience and (ii) the quality of the decision that is taken next. An important mediating factor is whether decision-making is centralized or decentralized.
Subjects: 
centralization
decentralization
learning
cheap talk
reputational concerns
globalization
policy diffusion
JEL: 
D83
D70
D02
Document Type: 
Working Paper

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