Demonstrating Nash Equilibrium in Game Theory
Scenario: Two cars are driving toward each other on a collision course. Each driver must decide whether to SWERVE or go STRAIGHT.
Outcomes:
Nash Equilibrium: The best strategies are when one player swerves and the other goes straight. Neither player can improve by changing their choice alone.
Computer: Swerve | Computer: Straight | |
---|---|---|
Human: Swerve | (0, 0) | (-1, +1) â |
Human: Straight | (+1, -1) â | (-10, -10) |
â = Nash Equilibrium positions | Format: (Human payoff, Computer payoff)
The computer has already made its choice!
What will you choose?
Choose wisely - the computer has already decided!