Nash equilibrium and everyday life
source: http://www.thelondonglobalist.org/how-game-theory-affects-your-everyday-life/
In the lecture, we all got familiar with Nash equilibrium and the prisoner’s dilemma. The calculations we did in the lecture suggests that sometimes the Nash equilibrium strategy is not actually the best result for people evolved. How is this idea suggested in our daily life? Why people sometimes make bad decisions? The article answers this question by applying Nash equilibrium to everyday life. It is refreshing that the article quotes from the movie A Beautiful Mind which suggests that Adam Smith is wrong and explains why that is the case by using Nash equilibrium. Then it uses this idea into people’s everyday life. By this way of illustration, the main point made by this article is clearly expressed to readers.
The article explains Nash equilibrium and prisoner’s dilemma in a similar way comparing to the lecture. However, it extends this idea and uses in our life. It illustrates how Nash equilibrium is applied to environmental policies, athletic competitions and whether women decide to wear make up or not. Reading through the article, students could realize how normal it is to find a Nash equilibrium in our life.