DYNAMIC FOCAL POINTS IN N-PERSON COORDINATION GAMES

To understand how groups coordinate, we study infinitely repeated N-pl ayer coordination games in the context of strategic uncertainty. In a situation where players share no common language or culture, ambiguity is always present. However, finding an adequate principle for a commo n language is not easy: a tradeoff between simplicity and efficiency h as to be made. All these points are illustrated on repeated N-player c oordination games on m loci. In particular, we demonstrate how a commo n principle can accelerate coordination. We present very simple rules that are optimal in the space of all languages for m (number of coordi nation loci) from 2 to 5 and for all N, the number of players. We also show that when more memory is used in the language (strategies), play ers may not coordinate, whereas this is never the case when players re member only the previous period.