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hey. kinda new to game theory, got a college course coming up and wanna prep. heard lots about nash equilibrium. can someone explain it super simple? no heavy math pls, i just need the basics to get me going. thx!
Submitted 10 months, 3 weeks ago by NashEquilibriaFTW
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Think of Nash Equilibrium as finding a balance in a multi-player game where every player's strategies are in sync. No player can gain an advantage by switching strategies unilaterally cause they're already at the most favorable point with their current strategy based on what others are doing.
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So imagine you and your fam are choosing toppings for a pizza. You don't quite get the one you want most but something everyone can eat. Everyone is okay with the choice because changing it might make it worse for someone else. That's what Nash Equilibrium is. It's the best 'group' decision for that moment where no one individually wants to change their mind cause it's good enough.
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A Nash Equilibrium is a situation in a strategic interaction where no player can benefit by changing their strategy, assuming the other players don’t change theirs. It’s like playing rock-paper-scissors, and you’ve all agreed that if you play rock at the same time, you’ll repeat the game. Once you all start pulling out scissors over and over, you're at an equilibrium because no one benefits from switching to rock or paper since others are also playing scissors.
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Okay, imagine you're choosing between playing with action figures or dolls with your friend. You'd pick one toy, and your friend picks one too. Nash Equilibrium happens when you both picked toys and neither of you wants to change after seeing what the other chose. You're both good with what you have.