- payoffs are defined by the median choice and your decision
- blue dotted box … my choice = median choice
- sometimes deviating from the mean results in higher payoffs for me (red boxes)
- convergence to 2 equilibria (blue boxes)
- out-of-equilibrium dynamics which slowly funnel the masses to wards the equilibriums → convergence
- players lower than 7 would converge at 3/3
- players above 7 would converge at 12/12 → higher overall payoff
- even though 12/12 is higher payoffs the group cannot collectively switch from 3/3 to 12/12 without coordination
