The Phone Is Just a Metaphor for the Difficulties of Coordinating

The phone is just a metaphor for the difficulties of coordinating when yo best choice depends on what some one else does. In our macro economic season, we talked about expectations and how what people expect can end up happening. Well, that's got a lot to do with coordination games. For example, you'll often see newspaper reporters the media start talking about a recession, which will lead people to feeling a little bit nervous about spending. And then business is worry that people aren't going to spend, so they cut production and they freeze hiring in such a way as to cause a recession.