Hidden Symmetries and Focal Points
University of Cologne - Department of Economics
University of Graz - Department of Economics
March 3, 2012
We provide a general formal framework to define and analyze the concepts of focal points and frames for normal form games. The information provided by a frame is captured by a symmetry structure which is consistent with the payoff structure of the game. The set of symmetry structures has itself a clear structure (a lattice). Focal points are strategy profiles which respect the symmetry structure and are chosen according to some meta-norm, which is not particular to the framed game at hand.
Number of Pages in PDF File: 39
Keywords: symmetry, focal points, frames, Nash equilibria
JEL Classification: C72, D83
Date posted: August 20, 2008 ; Last revised: April 3, 2012
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