Schelling Point

A Schelling Point, named after economist Thomas Schelling, refers to a solution or agreement that people naturally gravitate towards in situations where coordination is needed but communication is limited. It occurs when individuals rely on shared knowledge or common assumptions to find a mutually acceptable outcome. For example, if two friends meet in a busy city without prior arrangements, they might both choose a well-known landmark, like a central park, as their meeting point. This indicates how people often intuitively align their choices based on shared expectations, even without direct communication.