Abstract—In coordination games, we have multiplicity of equilibria. This multiplicity makes it possible to explain the coexistence of contradictory cultures in a society. Based on this, I construct a coordination game that can explain Japanese cultures, punctuality and unpunctuality. However, the games, if the group size is large, the multiplicity of equilibria disappears. Consequently, we find out that each agent in the group is always unpunctual. So, when considering groups with large size, we have a unique Nash equilibrium and observe only one culture in which each agent is unpunctual. I show that some division of the group can change the structure of games, resulting in multiplicity of equilibria. Therefore, each agent is likely to be punctual. From this viewpoint, I emphasize the information structure in groups and present an interpretation of Just-in-Time system of Toyota.

Index Terms—coordination problem, multiplicity of equilibria, division of groups, coordination among groups, just-in-time system

Cite: Tetsuro Okazaki, "Coordination Problem and Coordination among Groups: Effect of Group Size on Business Culture," Journal of Advanced Management Science, Vol. 2, No. 3, pp. 232-235, September 2014. doi: 10.12720/joams.2.3.232-235