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==Nash equilibrium and intuition==

==Nash equilibrium and intuition==

There are cases in which the Nash equilibrium is a counter-intuitive outcome (and where the intuitive outcome is not a Nash equilibrium). The reason for this is the assumption that a participant assumes that nobody except for him will change strategies. If two very unlikely or disadvantageous strategies are best responses to each other, it is a Nash Equilibrium, but it may not be the most desirable outcome.  For example, if you prefer a Republican government, but more people are voting Democratic, voting Democratic or abstaining are among your best responses, since your vote will not be able to affect the outcome. This may be part of the reason why countries sometimes elect [[liberal]] governments, even though most rational and logical people are [[conservative]]. If the media is able to convince people that most others are voting for a left-wing party, some would-be conservatives might get discouraged and not vote, or even vote for the left-wing party because they think it is what everyone else is doing, with [[Barack Obama|disastrous implications]].

There are cases in which the Nash equilibrium is a counter-intuitive outcome (and where the intuitive outcome is not a Nash equilibrium). The reason for this is the assumption that a participant assumes that nobody except for him will change strategies. If two very unlikely or disadvantageous strategies are best responses to each other, it is a Nash Equilibrium, but it may not be the most desirable outcome.  For example, if you prefer a Republican government, but more people are voting Democratic, voting Democratic or abstaining are among your best responses, since your vote will not be able to affect the outcome. This may be part of the reason why countries sometimes elect [[liberal]] governments, even though most rational and logical people are [[conservative]]. If the media is able to convince people that most others are voting for a left-wing party, some would-be conservatives might get discouraged and not vote, or even vote for the left-wing party because they think it is what everyone else is doing, with [[Barack Obama|disastrous implications]].

 

[[category:mathematics]]

[[category:game theory]]

[[category:economics]]

[[category:economics]]