The Chaudhuri, Schotter and Sopher results suggest that in order to successfully coordinate to the payoff dominant equilibrium:
A) All participants must be convinced that every other participant will choose "7"; even small amounts of doubt can lead to large-scale coordination failures.
B) All participants must be convinced that at least one other participant will chose "7".
C) All participants must first coordinate on sending the message that every person will choose "7" and then each participant must follow up by actually choosing "7".
D) All participants must first successfully eliminate all dominated strategies.

Question

Quizplus · Accepted Answer

The Chaudhuri, Schotter, and Sopher results emphasize the importance of mutual belief in coordination games. For successful coordination to the payoff dominant equilibrium, all participants must be convinced that every other participant will choose the optimal strategy, "7" in this case. Even small doubts can disrupt coordination.

The Chaudhuri, Schotter and Sopher Results Suggest That in Order