Coordination Games
Coordination games are a type of game in game theory where players benefit from making the same choices or coordinating their actions. The main goal is to achieve a mutually beneficial outcome, often requiring players to communicate or anticipate each other's decisions. A classic example is the Battle of the Sexes, where two players must choose between two activities, each preferring a different one but both wanting to be together.
In coordination games, multiple equilibria can exist, meaning there are several possible outcomes where players can successfully coordinate. The Stag Hunt is another example, illustrating the importance of trust and cooperation, as players must decide whether to work together for a larger reward or act independently for a smaller one.