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How to Find Nash Equilibrium

How to Find Nash Equilibrium

To find it, share each player’s strategy with every other player. If the players do not change their strategies, you have found the Nash equilibrium.

For eg, in the battle of the sexes scenario, draw a table with two rows and two columns. 

The vertical axis represents the woman’s options: ballet/prizefight and horizontal axis represents the man’s choices: also ballet /prizefight. In the top left quadrant, they both choose ballet (Nash Equilibrium). In the bottom right quadrant, they both choose prizefight (Nash Equilibrium). This table illustrates there are two possible Nash equilibria.

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MORE IDEAS FROM THE SAME ARTICLE

A man and a woman are hoping to attend an event together, but they must choose between a prizefight or a ballet.

It is a concept in game theory in which every participant in a noncooperative game can optimize their outcome based on the other players’ decisions.

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