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Coordination game

In game theory, coordination games are a class of games with multiple pure strategy Nash equilibria in which players choose the same or corresponding strategies. In game theory, coordination games are a class of games with multiple pure strategy Nash equilibria in which players choose the same or corresponding strategies. If this game is a coordination game, then the following inequalities hold in the payoff matrix for player 1 (rows): A > B, D > C, and for player 2 (columns): a > c, d > b. See Fig. 1. In this game the strategy profiles {Left, Up} and {Right, Down} are pure Nash equilibria, marked in gray. This setup can be extended for more than two strategies (strategies are usually sorted so that the Nash equilibria are in the diagonal from top left to bottom right), as well as for a game with more than two players.

[ "Nash equilibrium", "Mathematical optimization", "Mathematical economics", "Microeconomics", "Game theory" ]
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