In games involving multiple Nash equilibria, several qualitative factors appear to be important in explaining the existence of a focal-point equilibrium, including:
I. Distribution of payoffs.
II. Equity. III. Diversity.
IV. Fairness.
V. Uniqueness.
Which of the following is correct?

Question

Quizplus · Accepted Answer

In games with multiple Nash equilibria, factors such as the distribution of payoffs, equity, and fairness are important in explaining the existence of a focal-point equilibrium. These factors help players coordinate on an equilibrium without explicit communication, based on perceived fairness or the most equitable distribution of outcomes. Diversity and uniqueness are not typically cited in this context.

In Games Involving Multiple Nash Equilibria, Several Qualitative Factors Appear