Coordination games are games where the players can achieve a better outcome by coordinating their strategies. In these games, players must choose between two or more options, and they all prefer to choose the same option.

Examples of Coordination Games

Battle of the Sexes

One classic example of a coordination game is the 'Battle of the Sexes' game. In this game, a husband and wife must decide where to go for an evening out. The husband prefers to go to a football game, while the wife prefers to go to the opera. However, both of them would prefer to go to the same place rather than to separate places. Thus, they must coordinate their choice to avoid a bad outcome.

Stag Hunt

Another example is the 'Stag Hunt' game. In this game, two hunters must choose between hunting a stag or a hare. Hunting a stag requires cooperation, as both hunters must work together to catch it. Hunting a hare, on the other hand, can be done alone. If both hunters choose to hunt the stag, they will catch it and receive a large prize. If one hunter chooses to hunt the stag and the other chooses to hunt the hare, the hunter who hunted the stag will come back empty-handed. If both hunters choose to hunt the hare, they will each receive a small prize.

Coordination Game Equilibrium

Game theory provides tools to analyze the outcomes of these coordination games. One important concept is the 'Coordination Game Equilibrium', where both players choose the same strategy. In the 'Battle of the Sexes' game, the coordination game equilibrium is achieved when both the husband and wife choose to go to the football game or the opera. In the 'Stag Hunt' game, the coordination game equilibrium is achieved when both hunters choose to hunt the stag.

Coordination Games in Politics

Coordination games are prevalent in politics. For example, in international relations, countries may need to coordinate their policies to achieve a better outcome. Similarly, political parties may need to coordinate their strategies to achieve their goals. Game theory provides a useful framework to analyze these situations and predict outcomes.

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