Assume there are two competing social network sites, Mugshot and Graybar, and each grow in value as more people use them. Mugshot has been around longer and has the most users, but people tend to agree that Graybar is a better site, so the equilibrium where everyone uses Graybar is preferred to the equilibrium where everyone uses Mugshot. This situation describes a multiplayer
A) assurance game.
B) prisoner's dilemma game.
C) battle of the sexes game.
D) pure coordination game.

Question

Quizplus · Accepted Answer

In an assurance game, players prefer to coordinate on a better equilibrium, but they need assurance that others will also choose the better option. Here, users prefer Graybar but need assurance that others will switch from Mugshot.

Assume There Are Two Competing Social Network Sites, Mugshot and Graybar