Write a One Page write up with single space about the difference between Non-Cooperative and...

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Write a One Page write up with single space about the difference between Non-Cooperative and Coordination Games. What is the benefit of coordination between players.Stick to the outcome, not to the definition.

David · Accepted Answer

Coordination games are those games in which payoff of each player rise if all players are making 
high efforts. Coordination is necessary to have better outcomes, especially when a task is 
supposed to be performed by a group of people involved in different tasks. Therefore it is 
imperative for the management to coordinate the decisions, since otherwise players may get 
stuck in a situation where nobody exerts much effort because others are not expected to work 
hard. In these games, productivity of each player’s effort is likely to be dependent on the other 
players, and there can be multiple Nash equilibriums, each at different common effort level. 
Although behaviors are sensitive to factors like change in the size of group or the effort cost, 
they are likely to have no effect on the set of Nash equilibrium. The example of coordination 
game is “minimum effort game”. In such a game, efforts are individually costly and each 
player’s effort level is dependent on the effort level chosen by the other players.

Write a One Page write up with single space about the difference between Non-Cooperative and Coordination Games. What is the benefit of coordination between players.Stick to the outcome, not to the...

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