What is schelling point in Game theory

August 21, 2018 12:15 am | Updated 12:15 am IST

This refers to the common solution to a problem that is chosen by individuals in a group when there is an absence of coordination between them. In other words, it refers to people’s expectations of what others expect them to do in the absence of sufficient information to coordinate their actions. Two strangers agreeing to meet in a large city, but without any predetermined time or venue, for instance, might decide to gather at a prominent locality of the city at a significant moment. It is named after American economist Thomas Schelling who proposed it in his 1960 book, The Strategy of Conflict.

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