Thursday, April 9, 2009

Econ 101: Nash Equilibrium in a Non-Cooperative Single-Shot Game

Via Greg Mankiw, a wonderful illustration of almost the precise game I used to describe the no stop sign intersection. The outcome is ... predictable.

What would you have done? Are you sure?


Robert said...

Read up on the game for more insight into the players:

"The largest jackpot so far was featured in the second series on 14 March 2008. The accumulated jackpot was £100,150 and the entire jackpot was stolen by contestant Sarah, making her the biggest winner on the show to date. All four contestants in the game (Chloe, Stephen, Sarah and Darren) were returning contestants from previous games who all split where their opponent stole."

lisamona said...

I would have used the steal ball. That way I am certain of company in potential misery and could choose to share the money anyway.