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

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  • Kuzmics, Christoph

    (Center for Mathematical Economics, Bielefeld University)

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.

Suggested Citation

  • Kuzmics, Christoph, 2014. "Coordination with independent private values: why pedestrians sometimes bump into each other," Center for Mathematical Economics Working Papers 501, Center for Mathematical Economics, Bielefeld University.
    • Handle: RePEc:bie:wpaper:501
    as

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    File URL: https://pub.uni-bielefeld.de/download/2675336/2901868
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    evolutionary stability; best-response dynamics; CSS; incomplete information; continuously stable strategy;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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