Van Huyck et al. (1990) argue that the failure of many groups to coordinate to the payoff dominant equilibrium of everyone choosing "7" is caused by "strategic uncertainty". By this they mean that participants:
A) Are reluctant to choose high numbers because they are not absolutely convinced that everyone else in the group will do the same.
B) Are not certain that everyone else understands that the game has a dominant strategy, which is to always choose 1.
C) Are not certain that everyone else understood the payoff matrix.
D) Are not certain that everyone knows which strategy to choose in order to coordinate to the secure equilibrium.

Question

Quizplus · Accepted Answer

A) Participants are hesitant to choose high numbers due to doubts about whether others will also choose high numbers, reflecting strategic uncertainty about group coordination.

Van Huyck Et Al