Correlated strategies are when two people or things work together to make a plan that helps both of them succeed.
Imagine you and your friend are playing a game where you each pick a color, red or blue, at the same time. If you both pick red, you win. If you both pick blue, you also win. But if one picks red and the other blue, you both lose. Now, if you and your friend can talk before the game starts, you could agree to always pick the same color, like both picking red every time. That way, you’re more likely to win together. This is a correlated strategy because your choices are connected or linked by your agreement.
How it’s Like Sharing a Toy
Think of it like sharing a toy. If you and your friend both agree that you’ll take turns playing with the toy, instead of fighting over who gets it first, you both get to enjoy it more. Your agreement is like a correlated strategy, it helps both of you do better in the game of "who gets to play with the toy."
If you didn’t have an agreement, sometimes one person might pick red and the other blue by chance, just like sometimes one person grabs the toy before the other is ready. But with a plan, you can make sure you’re on the same team!
Examples
- Two kids picking teams for a game, and they both choose the same team because they talk beforehand.
- A group of friends deciding which restaurant to go to, and everyone picks the same place without discussing it.
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See also
- What is Perfect information?
- What are extensive-form games?
- How Does 3 game theory tactics Work?
- How Does Econ 101: Trade Offs and Opportunity Costs Explained! Work?
- What is Maximin" strategy?