Competition, Cooperation and Institutions as Coordination Mechanisms in the Economy: an Information-Theoretic Model

Abstract

In this paper competition and cooperation as mechanisms
for coordinating economic activity are considered in the
context of refusal or preference, respectively, for interaction strategies in their game-theoretic description [8]. To formalize the description of the interaction, the apparatus of information theory is used. It makes it possible to set the conditions on a qualitative level that favor or disfavor cooperation and the level of its information efficiency in comparison with the competition. It also shows the potential occurrence of an information intermediary as an economic institution with the prospect of creating methods for their measuring [4].