The Prisoner's Dilemma and Coordination Games

When both parties can't co ordinate with each other, we can end up with more than one equilibrium. The sad thing here is that this is a nath equilibrium, which yields a recession. If i can convince jusson's workers to believe we're in a good equilibrium, they'll buy a lot - but if they don't believe me, they'll worry about their jobs and cut back on their spending. And that's the problem the f d i was talking about when he warned that the only thing to fear is fear itself. So to day's tour of game theory seems pretty grim. But now let me conclude with a bit of good news instead. Even though it can