When using coordination games to look at the issue of bank runs, the best outcome occurs when:
A)people do not use the banking system.
B)some people, but not all, keep their money in the bank.
C)people run to withdraw their money from the bank.
D)all people keep their money in the bank.

Question

Quizplus · Accepted Answer

In coordination games, the best outcome occurs when all individuals coordinate on a single strategy. If all people keep their money in the bank, there will be no bank runs and everyone's money will be safe. Therefore, D is the best choice.

When Using Coordination Games to Look at the Issue of Bank