Costless Signals: Greenlighting - Deepstash

Costless Signals: Greenlighting

Life is rife with coordination problems. Consider passing someone on the street going the other way. You both have a shared incentive to coordinate about which side of the street to walk on, so that you don’t bump into each other. Even though the other person is a complete stranger, there is no particular reason she would try to deceive you. In such circumstances, people send signals (eg. move suddenly and flamboyantly toward one side) to successfully coordinate. Mathematical models show that these costless signals can be crucial in helping people solve otherwise thorny coordination problems.

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“Here we go again, with your mixed signals and my second thoughts.”

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