Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2014

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Coordination with independent private values: Why pedestrians sometimes bump into each other

Christoph Kuzmics*

Last modified: 2014-04-05

Abstract


Motivated by trying to better understand the norms that govern pedestrian traffic, I study symmetric two-player coordination games with independent private values. The strategies of ``always pass on the left'' and ``always pass on the right'' are always equilibria of this game. Some such games, however, also have other (pure strategy) equilibria with a positive likelihood of mis-coordination. Perhaps surprisingly, in some such games, these Pareto-inefficient equilibria, with a positive likelihood of mis-coordination, are the only evolutionarily stable equilibria of the game.

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