The self-described “errant economist” Thomas Schelling once illustrated his idea of a “focal point” with the following coordination game: Tomorrow you have to meet some friends in New York City, but you have no way of communicating with them. Where and when would you meet your friends? In a coordination game, all the players are capable of winning (i.e. obtaining the highest payoff) only if they choose the same strategy. The problem with the NYC example is that any place and time in the City could work as an equilibrium solution. Yet, when Schelling presented his game scenario to a group of his students, he found the most common answer was noon at Grand Central Terminal. But what if we were to change the city in this Schelling game to Paris, where there are many possible focal points, such as the Eiffel Tower, Notre Dame Cathedral, la Place Vendome, the Louvre, and the Pont Neuf, just to name a few?







Image credit: Jeppe and Birger Morgenstjerne 

