Coordination and Equilibrium Selection
Games like the driving example above have illustrated the need for solution to coordination problems. Often we are confronted with circumstances where we must solve coordination problems without the ability to communicate with our partner. Many authors have suggested that particular equilibria are focal for one reason or another. For instance, some equilibria may give higher payoffs, be naturally more salient, may be more fair, or may be safer. Sometimes these refinements conflict, which makes certain coordination games especially complicated and interesting (e.g. the Stag hunt, in which {Stag,Stag} has higher payoffs, but {Hare,Hare} is safer).
Read more about this topic: Coordination Game
Famous quotes containing the words equilibrium and/or selection:
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—Henry David Thoreau (1817–1862)