Which of the following is NOT an example of a coordination game with multiple equilibria?
A)Two people decide whether to remain friends or pursue a romantic relationship with each other.
B)Two sellers are in a market where their best option is the same regardless of what the other firm does.
C)Potential protesters decide whether to participate in protests to try to overthrow a government.
D)A company decides in which hours to operate for the convenience of its customers and suppliers.

Question

Quizplus · Accepted Answer

Option B describes a pure coordination game where both firms have the same best strategy regardless of what the other firm does. This game has a single equilibrium. In contrast, options A, C, and D all involve coordination games with multiple equilibria.

Which of the Following Is NOT an Example of a Coordination