Game Theory 101: What Is a Nash Equilibrium? (Stoplight Game)
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Game Theory 101: The Complete Textbook on Amazon: http://amzn.to/1SlRTtg http://gametheory101.com/courses/game-theory-101/ This lecture gives an intuitive explanation of economics concept known as "Nash equilibrium" using traffic signals as an example. To preempt confusion, the book now costs more because it is five times as long. Sorry this is outdated, but I can't rerecord the audio.
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Thank you very helpful!
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Why is the payoff for both stopping -1, -1, as opposed to 0,0?
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Thanks a lot!
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Thanks! finally understand it :D
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Are those numbers chosen randomly? If not can someone explain to me why -5,5 please :(
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Thanks for clearing things up in a few minutes!
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Nuclear mutually assured destruction. A real life Nash equilibrium with no effective authority.
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How I would love to understand but my genetic makeup makes it hard lol
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I have a small query; you say that no one would want to break the law of obeying the traffic light, but what if, for example, they were on the run for the police? Is there an example of a Nash equilibrium containing an action that no one would want to break under ANY circumstances?
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But how do you choose who moves first If you both have same options? :p
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those annoying subtitles tho -_-
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Can someone tell me how this would work if we have to use fiscal policy. ( tight or easy)
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Thank you Thank you. Makes this much more clear.
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This is probably the origin for the name of the 1950's Nash Rambler... for it's-not-properly an equilibrium—rather the equilibrium point or fulcrum would be the saddlepoint between four-corner-twistings, the local minimum 'betweenish' the here odd corners which are co-maxima standoffs not equilibria... easier to see on a continuum gameboard; better in 3D.
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I am by all means, in regards to math and physics, an idiot. Simply put; I know that if you throw somethin up, is must come come, i know why and how, but I cannot explain that mathematically. That being said, for me Nashs' equilibrium, in simple terms, is how the world should be. Decions based upon what is best for the idividual and the group.
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IF you take it as nobody would want to make a different move/choice, does that mean that given the nash equilibrium that all players are getting equal results?
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I love concise explanations!
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Drivers in Ireland are impervious to the Nash Equilibrium.
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What other examples of laws illustrate Nash's Equilibrium? Great Channel. Subbed.
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Omg man thanks so much, this makes way more sense then what my lecturer says.
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