Classification of Coordination Games

Conflict of Interest in a Coordination Game

The Two-Firm Cartel Model as a Coordination Game

Setup of the Windsurfing and Kitesurfing Pricing Game

Two software companies are independently deciding whether to develop their new products for 'Operating System X' or 'Operating System Y'. Both companies will earn a large profit if they develop for the same system, as this creates a larger ecosystem for third-party applications, benefiting them both. If they choose different systems, they will both earn a much smaller profit. Both companies would earn a slightly higher profit if they both chose System X over System Y, but their primary goal is to choose the same system. Which statement best analyzes the strategic situation these companies face?

The Lunch Coordination Problem

The Driver's Dilemma

For a strategic interaction to be considered a coordination game, it is essential that all players are equally satisfied with any of the potential coordinated outcomes.

Analyze the following simplified strategic scenarios. Match each scenario with the description that best characterizes the strategic interaction.

The Charging Port Standard Dilemma

Two friends, Alex and Ben, must independently choose which of two new video games, 'Starship Voyager' or 'Dungeon Quest', to buy. They will only be able to play together if they buy the same game. Their satisfaction from this decision is represented by the payoffs in the matrix below (Alex's payoff, Ben's payoff).

Based on an analysis of this payoff matrix, which statement best describes the strategic situation?

High-Speed Rail Investment Decision

Regional Infrastructure Investment

Two neighboring towns, A and B, are deciding on a theme for their summer festivals. They can choose either a 'Music' theme or a 'Food' theme. Their potential profits (in thousands of dollars) are shown in the matrix below, with the first number in each pair representing Town A's profit and the second representing Town B's.

Based on an analysis of this payoff matrix, which statement best describes the strategic situation?

For a strategic interaction to be considered a coordination game, it is essential that all players are equally satisfied with any of the potential coordinated outcomes.