In: Economics
Question: The Battle of the Sexes is a coordination game. Describe an instance in health care that arises as a coordination game. It’s ok to simplify matters here and you don’t have to mathematically derive the final decisions. Just describe the situation, the players, and what might happen. Example (does not include discussion of what might happen): There are two physicians caring for a patient with a chronic disease (e.g. diabetes). Both physicians have an obligation to do what is best for the patient but to also maximize their reimbursement and fulfill their obligations to their clinic
We can have two players Doctor and patient where the doctor has 2 options of going home and spending time with his family, which he prefers and gets more utility, or treating a patient, which he is required to do by the hospital as he gets paid only when he treats a patient. Therefore the payoff for doctor is 2 when he spends time with his family and 1 when he treats a patient.
similarly for a patient there are two options 1 treatment, which he prefers as he wants to get well and his payoff is 2 in this case or and going home in which he gets 1 payoff and he does not prefer this as this is not in his best interest.
BOTH get 0 payoff when they choose different things as the doctor cannot treat a patient if he is at home and a patient cannot get treated without a doctor. Therefore 0,0
Here the nash equilibrium is when they both decide to do the same thing.
DOCTOR PLAYER2(COLUMN)
PATIENT PLAYER 1(ROWS)
Patient/Doctor | TREATMENT | HOME |
TREATMENT | 2,1 | 0,0 |
HOME | 0,0 | 1,2 |