Definition: A game where players benefit from making the same choice as others, creating multiple equilibria.
Coordination games have multiple Nash equilibria—all driving on the right or all on the left both work. The challenge is coordinating on the same equilibrium. Focal points (natural or salient choices), communication, and conventions help. Once an equilibrium is established, it
Which side of the road to drive on is a coordination game—either side works if everyone agrees. Adopting technological standards (VHS vs Beta, QWERTY keyboard) involves coordination.
Coordination games show that multiple equilibria can exist and that history/convention matter for which is selected.
Category: Game Theory