Determine the term miscoordination - Policy Formation
A problem known as miscoordination in Policy Formation may also emerge and it may be either vertical or horizontal. Let us assume that there are two countries. In each country, the government faces a large number of individually small domestic players. The two governments of respective countries are also engaged in a prisoners' dilemma-type policy game, stemming from the presence of an international policy spillover. Policy formation in such cases suffers from both a vertical coordination problem between each government and its private sector, and a horizontal coordination problem between governments of other countries.