If so, why is Nash's equilibrium used for all sorts of things, such as
electricity regulation? (If I remember, the movie mentioned that.) Is it
that Nash equilibrium is basically a normative concept and that it's
applied
to improve the efficiency of electricity regulation (or what not) rather
Jim writes
In the article below, Varian explains Nash equilibrium. As an expert in game
theory, he points out that it's not a realistic prediction of how people
play most actual real-world games.
If so, why is Nash's equilibrium used for all sorts of things, such as
electricity regulation? (If
Gil writes
... for what it's worth, the global overfishing problem (see the front-page
NYTimes article from a day or so ago) seems in many respects like a classic
instance of a suboptimal outcome to a prisoners' dilemma-style problem.
They presented the problem of overfishing at UC Berkeley grad
James Devine quotes Hal R. Varian of the NY TIMES:
What Mr. Nash recognized was that in any sort of strategic interaction, the
best choice for any single player depends critically on his beliefs about
what the other players might do. Mr. Nash proposed that we look for outcomes
where each player
Again, Phil Mirowski's new book is excellent on this.
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]
:24839] Re: Nash equilibrium's relevance
Again, Phil Mirowski's new book is excellent on this.
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]
Michael wrote:
Again, Phil Mirowski's new book is excellent on this.
Thanks to Michael's previous reference, I read parts of the book
and loved it. I am about to start reading it from cover to cover.
One feeling I got from the book is that Nash equilibrium is some
kind of a paranoid
