Bosch-Domènech, Antoni; Vriend, Nicolaas J. - In: Journal of Economic Behavior & Organization 94 (2013) C, pp. 52-67
Considering a pure coordination game with a large number of equivalent equilibria, we argue that a focal point that is itself not a Nash equilibrium, and is Pareto dominated by all Nash equilibria, may enhance coordination substantially. Besides attracting the players’ choices to itself, such...