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Mental Models

Common Knowledge & Coordination

Final Exam: Common Knowledge & Coordination

A graded, one-way final exam on common knowledge and coordination — the ladder from private to common knowledge, public signals and focal points, coordination games and equilibrium selection, bank runs and revolutions, and where the model breaks. Pass mark 70%.

20 min Updated Jul 10, 2026

This is the final exam for Common Knowledge & Coordination. It pulls together the whole course: the ladder from private to mutual to common knowledge, why a public signal changes behaviour when a pile of private ones does not, focal points and coordination games, the real faces of the model — bank runs, revolutions, advertising, and censorship — and the places where the idealisation breaks. Take your time and reason each one through.

Warning:

How this exam works

Read carefully — this exam is final. Each question appears one at a time. Once you submit an answer it is locked for good: there’s no going back, no retry, and no restart. Your score is hidden until the end, where you’ll see a pass/fail verdict. The pass mark is 70%. A few questions ask you to select all correct answers.

Question 1 of 26

What is the precise difference between mutual knowledge and common knowledge?

Select an answer to continue.

Course Recap

Big picture

Common knowledge & coordination, in one picture

  • Common Knowledge
    • The ladder
      • Private → mutual → everyone knows that everyone knows
    • The engine
      • Public signals and focal points make it common
    • The games
      • Stag Hunt, equilibrium selection, critical mass
    • Real faces
      • Bank runs, revolutions, ads, censorship
    • Where it breaks
      • Two generals, false common knowledge, approximations
Success:

Key takeaways

Coordinated, risky action needs more than everyone privately knowing a fact — it needs common knowledge, where everyone knows that everyone knows, without end. A pile of private signals never gets you there; a single public signal, seen by all at once, does — which is exactly what the child’s shout, a Super Bowl advert, a visible crowd, and a free press all manufacture. That is why coordination games have multiple equilibria (a bad, everyone-plays-safe outcome can be perfectly stable), why bank runs and revolutions are self-fulfilling and surprise everyone, and why regimes attack the common-knowledge channel first. But it is an idealisation: no finite string of confirmations ever truly closes the tower, false common knowledge coordinates a crowd just as well as true, and a focal point or a little critical mass can do the job without everyone knowing everything. Read for what is common, not merely shared — and you will see the hidden signal behind the crowd.

Mark lesson as complete