Coordination Problem

A situation where multiple rational individuals, each pursuing their optimal strategy, become trapped in a collectively suboptimal equilibrium due to inability to coordinate their actions. Everyone wants to change the status quo, but no one is willing to move first unilaterally, because the cost of acting alone far exceeds the cost of maintaining the current state.

Read the daily articles behind this idea on the Chinese edition.

Related principles

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  Blue Ocean Strategy
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  Interoperability Over Platform Consolidation
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  Strategic Exit: Identity Shift from Strategic Partner to Financial Investor
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  Demand Peak & Capacity Elasticity
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  Build-Measure-Learn Loop
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  Schelling's Paradox of Deterrence
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  Zone of Possible Agreement (ZOPA)