A best response is the strategy that results in the socially optimal outcome if all players choose it.

A dominant strategy is the strategy that gives the player the highest payoff, irrespective of the strategies selected by other players.

A social interaction is a strategic interaction where people are aware of the ways that their actions affect each other.

A strategy is an action that a person may take when that person is unaware of the effect of their action on others.

... more expensive ...

... cheaper ...

... underused ...

... overexploited ...

Information

Best responses

Payoffs

Dominant strategies

A conflict of interest in a coordination game can be resolved if players negotiate.

A coordination game always has a single Nash equilibrium.

A coordination game in which all players act independently results in the Nash equilibrium with the highest payoffs being selected.

In a coordination game with two players, by definition, in the Nash equilibrium, both players choose the same action.