Assignment Coordination
Consider the following game:
Suppose there are two travelers who lost each other in a city. They have the option to meet either at the train station or at the library. For them, it doesn’t matter where they meet. It is only important that they meet.
The problem is that they cannot communicate.
Task
- Create the pay-off matrix and find the Nash equilibrium.
- What is the problem in this game?
Solution
Nash-equilibria: {Train Station, Train Station} and {Library, Library}
The problem is that there are two Nash-equilibria which makes it difficult to decide on the strategy.
