Costly local distinguishability determines unique equilibrium outcomes in coordination games.
The article explores how the cost of distinguishing nearby states affects the outcomes of coordination games. When it is difficult to tell apart similar options, there is only one equilibrium. But if it's easier to distinguish between choices, multiple equilibria can exist. The researchers focus on a game involving a large group of players and show that players can intentionally avoid acquiring information that would lead to multiple equilibria. This study sheds light on how the cost of distinguishing between options influences decision-making in group settings.