The difference between a coordination problem and a prisoner's dilemma is that:
A) coordination problems have multiple equilibria while prisoner's dilemma games have one unique dominant strategy equilibrium.
B) prisoner's dilemma games have multiple equilibria while coordination problems game have one unique dominant strategy equilibrium.
C) coordination problems have multiple equilibria, one of which is payoff dominant, while prisoner's dilemma games have multiple equilibria which need not be payoff ranked.
D) prisoner's dilemma games have multiple equilibria, one of which is payoff dominant, while coordination problems have multiple equilibria which need not be payoff ranked.

Question

Quizplus · Accepted Answer

Coordination problems are characterized by multiple equilibria where players must coordinate their choices to achieve a desirable outcome, while a prisoner's dilemma has a unique dominant strategy equilibrium that leads to a suboptimal outcome for all players involved.

The Difference Between a Coordination Problem and a Prisoner's Dilemma