Market clearing

A coordination strategy includes the aligned action, which results in the context of decision and action selection between different members of a group to comply with the individual preferences of the Community's objectives of the group.

Distinction

Decentralized coordination

As a result, the price functions, the selected actions, within the framework of pricing to maximize the benefits. In game theoretical point of view, this corresponds to the maximization of the sum of the payoffs. From the comparison of alternatives based on a price and the derived decision choice is thus a market system forms. The continuous interaction of prices on the actions and this in turn on prices, the prices are the coordination medium between the operating independently of each other participants. The coordination between the participants takes place locally.

Central coordination

Without a price system of coordinating decision-making mechanism is missing ( non- market system ). The solution of the coordination processes must be made through a collective decision-making. The coordination between the participants takes place centrally.

Influences and effects

In the above-mentioned mechanisms of coordination number of effects and processes such as coordination failure, critical mass, the lock-in effect, bandwagon effect, Focal Point can act.