Nash Equilibrium and You
Link: http://www.thelondonglobalist.org/how-game-theory-affects-your-everyday-life/
How does game theory impact our everyday lives? In this article, we explore the different real world examples of game theory. This article explains how Game Theory is a situation in which all people “are using Nash Strategy” and Nash strategy is when every person is doing what’s best for them while considering the choice of others. The article helps people understand game theory as it pertains to their everyday life. For example, the article first explains Nash Strategy by looking at someone who goes to buy milk at the cheapest store and a store that prices their milk below competitors to attract customers. Following this example, the article explores even more real life examples such as professional athletes who use drug enhancing drugs and women who put on makeup. In these real life situations, people behave in certain ways because it would put them at a disadvantage if they didn’t.
This article and these examples are very similar to the work we have been doing in class. Rather than looking at football players or women who wear makeup, we’ve looked at examples where people are trying to drive from city to city or score a goal. Although we’ve explored different examples, the principle behind the examples are the same: people’s behavior can be understood by also understanding Nash Equilibrium. In all of these cases, no person could gain by changing their strategy and it is beneficial to every participant to consider the choices of others.