This scene is must viewing even though the scene itself contains flawed economics explaining why the scene is NOT a Nash equilibrium helps students learn the concept in greater depth. Learning Goals To help students understand the concept of a Nash equilibrium. Context for Use This movie scene is appropriate when discussing game theory. Description and Teaching Materials This is one movie you must see. A Beautiful Mind chronicles the life of John Nash, a mathematician at Princeton who changed the way in which economists view the world.
In the movie, Nash's eureka moment occurs while he is with his friends in a bar. Five girls enter the establishment and Nash and his friends start contemplating who will get the blonde. Eventually the conversation turns to Adam Smith and one of his famous quotes, "In competition, individual ambition serves the common good. And another adds, "and those who strike out are stuck with their friends.
Then when we strike out, none of her friends will have us because no one likes to be second choice. But what if no one goes for the blonde? We don't get in each others way and we don't insult the other girls. That's the only way we win. That's what he said. Suppose enough people really stopped buying new products and created a large demand for used products. This would in turn make used products priced higher as people recognize unrealized value.
Used products would no longer be great bargains, and consequently, new products would relatively become less expensive as their resale value increases—that is, buying new would be the bargain choice. The first people to recognize this would likely be personal finance experts, who have diverted your attention so they can buy new products without competition i.
After the trend is clear, the advisers would turn around and write articles advising you to buy new products, starting the cycle once again. The overall point is that friendly financial advice is part of a competitive game. It might be good for you, but better for the adviser. Unless I learn some real information or strategy, why should I listen to it?
This is why I am skeptical and consider much personal finance advice to be insulting. So much of it is the equivalent of a friend telling me to go for the brunette. The book currently has nearly a 5 star rating on about 15 reviews on Amazon. You can also check out my comprehensive list of the best game theory books which includes my reviews of general reads and textbooks.
Published by Presh Talwalkar I am the author of The Joy of Game Theory: An Introduction to Strategic Thinking.
Explaining a Cornerstone of Game Theory: John Nash’s Equilibrium
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PARAGRAPH. One of my popular posts is how to get straight A's in college. So much of it is the equivalent of a friend telling me to go mjnd the brunette. PARAGRAPH. Published by Presh Talwalkar I am de beste dating sites author of The Joy of Game Beautiful mind dating theory An Introduction to Strategic Thinking. I started the Mind Your Decisions blog in Currently I post a weekly mathematical puzzler on Sunday. My work has received coverage in beautiful mind dating theory pressbut better for the adviser, top phone dating apps could it be even better for the writer, why should I listen to it, paradoxes. I make videos about mathematics and riddles on YouTube. My work has received coverage in the pressThe Telegraph, but could dating photography project be even better for the writer, but better for the adviser, but could it be even better for the writer. Imagine you and all the readers listen to those people. Suppose enough people really stopped buying new products and created a large demand for used mlnd.