Exploring Coordination Games and the Ketchup Question in Game Theory
This text dives into the dynamics of coordination games, highlighting the Ketchup Question and its implications in learning behaviors among players. The concept of Lyapunov functions is introduced, which helps analyze stability in player strategies. Two distinct styles of coordination—classical coordination and the Standing Ovation model—are explored, showcasing measurable differences in payoffs and psychological aspects influencing decisions. Different game scenarios are discussed, including the Maui-Des Moines game and shake-and-bow games, providing insights into optimal coordination strategies.
Exploring Coordination Games and the Ketchup Question in Game Theory
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Presentation Transcript
Model Thinking Scott E Page
Pure Coordination Game Player #2 F C F Player #1 C
F(x), a Lyaponuvfunction A1: has a maximum value. A2: There is a k > 0 such that if xt+1 ≠ xt, F(xt+1) > F(xt) + k Claim: At some point xt+1 = xt
N Person Coordination Game Lyapunov Function = # coordinations
Coordination Game: Measurable difference in payoffs, no one would choose not to coordinate Standing Ovation: could be more “psychological”, it’s okay to differ
Maui - Des Moines Game #2 M D M D #1
Metric – English Game #2 M D M D #1
Shake – Bow Game #2 B S B S #1
Model Thinking Scott E Page
