Technology As Innovator

May 14

Schelling point

Category: How General stuffs work Add comments

Game theory

Game theory describes situations where multiple players make decisions in an attempt to maximize their returns.

Schelling point

Illustration of Schelling example.This image did not load

A Schelling point (also called focal point) is a solution that people will tend to use in the absence of communication, because it seems natural, special or relevant to them.

Consider a simple example: two people unable to communicate with each other are each shown a panel of four squares and asked to select one; if and only if they both select the same one, they will each receive a prize. Three of the squares are blue and one is red. Assuming they each know nothing about the other player, but that they each do want to win the prize, then they will, reasonably, both choose the red square. Of course, the red square is not in a sense a better square; they could win by both choosing any square. And it is the “right” square to select only if a player can be sure that the other player has selected it; but by hypothesis neither can. It is the most salient, the most notable square, though, and lacking any other one most people will choose it, and this will in fact (often) work.

My version of Schelling point

A classic question was asked: “You will meet someone. Who will you meet, at where, an when?”. I sent the question via an Instant Messenger.

I shall announce my results when more replies have been received.

What’s your answer to the above question?