Coordination is similar to Chicken: Two cars are speeding toward
each other on a narrow road. Instead of choosing to swerve or not to swerve,
the cars must choose between swerving left or swerving
right. If they make the same choice, then a terrible crash is averted.
Here's a typical playoff matrix:
|
Payoffs |
B |
||
|
FALSE |
TRUE |
||
|
A |
FALSE |
3/3 |
0/0 |
|
TRUE |
0/0 |
3/3 |
|
The 3/3 entry in the upper-left corner says that A and B
both chose not to swerve left (SL? = FALSE). In other words, they both swerved
right and therefore a crash was averted.
Coordination is the game companies play when they want to
develop a product that adheres to the same standards as similar products their
competitors are developing, but don't want to reveal information about the
product.