Showing posts with label Nash Equilibrium. Show all posts
Showing posts with label Nash Equilibrium. Show all posts

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?