  We study a repeated game with payoff externalities and observable actions
where two players receive information over time about an underlying
payoff-relevant state, and strategically coordinate their actions. Players
learn about the true state from private signals, as well as the actions of
others. They commonly learn the true state (Cripps et al., 2008), but do not
coordinate in every equilibrium. We show that there exist stable equilibria in
which players can overcome unfavorable signal realizations and eventually
coordinate on the correct action, for any discount factor. For high discount
factors, we show that in addition players can also achieve efficient payoffs.
