The Liberal Paradox

[Felz]

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Because they both think both go > neither go, and neither of them will go alone?

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This is true only under the assumption that they both create a binding contract (sanctions) which is not part of the scenario. As both go is not a nash eqilibrium this isn't a simple coordination game. bob would simply deviate and stay at home. Obviously the scenario of Bob and Alice is a mere placeholder and allows for Bob to deviate without Alice knowing before arrival at the movies.

Edit for clarification:
Alice then would anticipate that Bob would deviate and also stay at home given her preferences. So neither would go resulting in a non optimal solution. This is the liberal paradox.

It's simply a "prisoner's dilemma" scenario.