What is Nash Equilibrium?
In: 0
Nash Equilibrium is an idea that if everybody follows a process then no one person can break away from that process to succeed on their own unless at least one other person agrees to go along with them in breaking away.
Think of it like: if everybody buys their food at the supermarket, and farmer Joe sells his produce only to the supermarket, I can’t go buy farmer Joe’d stuff at a better price than everybody else buys it for at the supermarket .
If farmer Joe is willing to break from norms and not only sell to the supermarket, but also to me, only then can I get a better deal.
Also in cards, nobody can know what cards anybody else has unless someone breaks from norms and shows their cards and if someone else peeks at those shown cards, or if a player has a partner who can signal the cards they have.
In school you get in trouble if you cheat and the person you cheated off of also gets in trouble, and the Nash Equilibrium says this is soundly reasoned.
Basically: nobody can cheat unless somebody helps them cheat.
As long as everybody else follows the rules, no one person can successfully break the rules.
Latest Answers