Nash was awarded nobel prize-1994 in economics for this theory.
Please explain in detail.
2006-08-28 21:53:22 · 4 answers · asked by abhi_imag 1 in Science & Mathematics ➔ Mathematics
Basically, in game theory, it's the best choice you can make given your opponent's moves or alternative choices. The most often used example that I've seen is the Cold War example. One the one hand, you have the US with it's arms buildup, and on the other, Russia and it's arms buildup. Given the option of a possible nuclear war, do you continue the arms race based on the possibility that you might get nuked if you don't? The answer is yes. Anyways, it goes something like that. The mathematical details that Nash worked out are way more advanced than this example, but essentially that's what it's about. Choosing the best option given your opponent's choices. I might be hazy on the details of my example, but it can be worked out with tons of other examples as well.
2006-08-29 00:00:55 · answer #1 · answered by descartesprotege 3 · 1⤊ 0⤋
simply do a web search for Nash equilibrium. but unless you're up on fixed point theory, the proof may be difficult to accept.
2006-08-29 02:40:47 · answer #2 · answered by a_liberal_economist 3 · 0⤊ 0⤋
you should watch "A Beautiful Mind". That movie will explain everything to you.
2006-08-28 22:43:38 · answer #3 · answered by jaymay2008 3 · 0⤊ 0⤋
no
2006-08-29 05:33:21 · answer #4 · answered by btsmith_y 3 · 0⤊ 0⤋