Question 5What kind of insights does the Coordination Game provide? Choose all applicable statements.1 pointThere can be many Nash equilibria in a game. The popular computer keyboard design was inherited from typewriters. Players can always coordinate on the optimal outcome. The de facto standard of a new technology may not be efficient.A game might have good and bad Nash equilibria (the former are better than the latter for everyone). There is a unique self-fulfilling prophecy.

Concerning the above question 3, which of the following statements is correct? 1 pointThis game is similar to the prisoner’s dilemma in that it has a better outcome than Nash equilibrium for all players. This game is similar to the coordination game in that there are two Nash equilibria. This game is similar to the prisoner’s dilemma in that Nash equilibrium is a better outcome than every other outcome for all players. This game is similar to the coordination game in that each player’s objective is to match his/her behavior with the others.

onsider the following two-player game with three actions for each player. How many Nash equilibria are there? (If you are familiar with the concept of mixed strategies, do not count the mixed equilibria.)1 point12342.Question 2In the coordination game without correct beliefs, which of these can occur? 1 pointBelief disagreement may leads to non-Nash outcomes, and its realization is predictable. Belief disagreement may leads to non-Nash outcomes, and its realization is unpredictable.

Question 2In the coordination game without correct beliefs, which of these can occur? 1 pointBelief disagreement may leads to non-Nash outcomes, and its realization is predictable. Players actually play a Nash equilibrium, and which equilibrium is played is predictable. Players actually play a Nash equilibrium, and which equilibrium is played is unpredictable. Belief disagreement may leads to non-Nash outcomes, and its realization is unpredictable.

Players may not choose good strategies when they do not have enough experience (hence game theory’s predictions may not work). However, as they play the same game or similar games many times and adjust their behavior, they may come to play a Nash equilibrium. Which of the following is the correct statement regarding this phenomenon? 1 pointSuch an adjustment process is not observed in laboratory experiments. The traffic allocation around Hamamatsu city is most likely to be explained by pre-play communication. There is no guarantee that such an adjustment process always converges to a Nash equilibrium. If such adjustment processes converge in a game, the outcome should always be the same.

Coordination issues can be potentially alleviated byGroup of answer choicesa third-party (a government/regulator or industry association) directing choices of the players.a ritual or tradition that is known by all players.pre-game communication amongst the players.All of the above.firms adopting their dominant strategies.