CP.AR | 07-04-2010 07:18 PM | Quote:
Originally Posted by misteranswer
(Post 7014949)
The movie explanation of a Nash Equilibrium is incorrect. | I never said I got it from the movie (I assume you are referring to "A Beautiful Mind"), you still however, cannot say the explanation in the movie is completely wrong, as it describes a very specific case of a collaborative game which leads to a nash equilibrium (at the point of efficiency).
Here is the current definition of Nash Equilibrium I currently work off of - directly from one of my textbooks (Microeconomics: Theory and Applications with Calculus, Jeffery M. Perloff) My apologies ahead of time that I understand that I am still an undergrad student, and that I haven't seen all there is to economics yet. Quote: Nash Equilibrium: a set of strategies such that, when all other players use these strategies, no player can obtain a higher payoff by choosing a different strategy.
| page D-4
Futher more, to clarify my previous post - consumers will ultimately lose out in terms of "out of pocket" expenses for the consumption of goods, but as a member of society, we will gain in terms of additional government spending (if they do spend it), improved public goods, and increased productivity to name a few.
If you are to say I am incorrect, at least tell everyone your opinion and/or suggestions for amendment, not throw in a LMGTFY link |