coordination problem

A coordination problem occurs when individuals or groups need to work together and agree on a common plan or action, but face difficulties in aligning their decisions. This can happen because each person’s best choice depends on what others do, and without clear communication or trust, everyone might choose differently, leading to suboptimal outcomes. For example, drivers at a four-way stop need to decide who goes first; if everyone hesitates or acts unpredictably, it causes confusion. Effective coordination ensures that everyone’s actions are compatible, resulting in smoother, more efficient interactions.