What is Coordination game?
A coordination game is a strategic situation where players benefit most when they choose the same action as others, but the specific action they coordinate on may not matter as much as the fact of coordination itself.
How it works
Unlike the prisoner’s dilemma (where individual incentives conflict with collective welfare), coordination games have aligned incentives: everyone benefits from matching choices. The challenge is not motivation but communication: which option will everyone pick? Focal points (Schelling points) help coordinate by providing a salient default. Driving on the right side of the road is a coordination equilibrium: it does not matter which side, but everyone must pick the same one.
Applied example
Two people who agree to meet in New York City without specifying a location will often independently choose Grand Central Station at noon, a Schelling focal point. They coordinate not because the location is optimal but because it is the most culturally salient meeting point.
Why it matters
Coordination games explain why standards, conventions, and norms emerge and persist even when alternative coordinated solutions would be equally good.
