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by donw 2212 days ago
That's a good example -- and another "coordination problem" at that, which is one of the types of problems where appropriate government action may be the most efficient solution.
1 comments

Addendum: I'm seeing a common theme in the responses.

When there's a coordination problem, but the equilibria state is unsustainable (such as overfishing) or lower-value (imagine competing electric grids with different voltages and frequencies), then government regulation can be useful by either imposing unilateral costs, and/or by defining a common standard.

There is the issue of avoiding regulatory capture, but I suppose that's for another time. :)