Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Nash Equilibrium
Baek, Yongjoo
November 28, 2006
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
A Beautiful Mind
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Outline
1
Meaning of Nash Equilibrium What is Nash Equilibrium? Where is Nash Equilibrium? Examples of Nash Equilibrium Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors Mixed Strategy Nash Equilibrium What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Nash Equilibrium? Where is Nash Equilibrium?
Meaning of Nash Equilibrium
At a Nash equilibrium point,
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Nash Equilibrium? Where is Nash Equilibrium?
Meaning of Nash Equilibrium
At a Nash equilibrium point, Players Strategies 1 S1 2 S2 . . . . . . i Si . . . . . . n Sn Players Strategies 1 S1 2 S2 . . . . . . i Ti . . . . . . n Sn
Nash Equilibrium
No More Prot for Player i
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Nash Equilibrium? Where is Nash Equilibrium?
Meaning of Nash Equilibrium
At a Nash equilibrium point, Players Strategies 1 S1 2 S2 . . . . . . i Si . . . . . . n Sn Players Strategies 1 S1 2 S2 . . . . . . i Ti . . . . . . n Sn
Nash Equilibrium
No More Prot for Player i
No player can gain more by changing only his/her strategy.
Baek, Yongjoo Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Nash Equilibrium? Where is Nash Equilibrium?
Finding Nash Equilibrium Points in a 2-person Game
Choice 1 a11 , b11 . . . ai1 , bi1 . . . am1 , bm1 ... ... .. . ... .. . ... Choice j a1j , b1j . . . aij , bij . . . amj , bmj ... ... .. . ... .. . ... Choice n a1n , b1n . . . ain , bin . . . amn , bmn
Choice 1 . . . Choice i . . . Choice m
Table: Choices of A and B, and Corresponding Prots
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Nash Equilibrium? Where is Nash Equilibrium?
Finding Nash Equilibrium Points in a 2-person Game
Choice 1 a11 , b11 . . . ai1 , bi1 . . . am1 , bm1 ... ... .. . ... .. . ... Choice j a1j , b1j . . . aij , bij . . . amj , bmj ... ... .. . ... .. . ... Choice n a1n , b1n . . . ain , bin . . . amn , bmn
Choice 1 . . . Choice i . . . Choice m
Table: Choices of A and B, and Corresponding Prots
Given a Nash equilibrium point at (i, j),
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Nash Equilibrium? Where is Nash Equilibrium?
Finding Nash Equilibrium Points in a 2-person Game
Choice 1 a11 , b11 . . . ai1 , bi1 . . . am1 , bm1 ... ... .. . ... .. . ... Choice j a1j , b1j . . . aij , bij . . . amj , bmj ... ... .. . ... .. . ... Choice n a1n , b1n . . . ain , bin . . . amn , bmn
Choice 1 . . . Choice i . . . Choice m
Table: Choices of A and B, and Corresponding Prots
Given a Nash equilibrium point at (i, j),
aij is the maximum of the column.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Nash Equilibrium? Where is Nash Equilibrium?
Finding Nash Equilibrium Points in a 2-person Game
Choice 1 a11 , b11 . . . ai1 , bi1 . . . am1 , bm1 ... ... .. . ... .. . ... Choice j a1j , b1j . . . aij , bij . . . amj , bmj ... ... .. . ... .. . ... Choice n a1n , b1n . . . ain , bin . . . amn , bmn
Choice 1 . . . Choice i . . . Choice m
Table: Choices of A and B, and Corresponding Prots
Given a Nash equilibrium point at (i, j),
aij is the maximum of the column. bij is the maximum of the row.
Baek, Yongjoo Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Prisoners Dilemma
Two suspects of a crime are interrogated by the police.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Prisoners Dilemma
Two suspects of a crime are interrogated by the police. The suspects are isolated from each other.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Prisoners Dilemma
Two suspects of a crime are interrogated by the police. The suspects are isolated from each other. Stay Silent -1, -1 0, -4 Betray -4, 0 -2, -2
Stay Silent Betray
Table: Years to serve in Prison
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Prisoners Dilemma
Two suspects of a crime are interrogated by the police. The suspects are isolated from each other. Stay Silent -1, -1 0, -4 Betray -4, 0 -2, -2
Stay Silent Betray
Table: Years to serve in Prison
Both suspects betray!
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Hawk-Dove Game
Two players compete for a limited resource.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Hawk-Dove Game
Two players compete for a limited resource.
A hawk physically attacks its opponent.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Hawk-Dove Game
Two players compete for a limited resource.
A hawk physically attacks its opponent. A dove uses threat but avoids ght.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Hawk-Dove Game
Two players compete for a limited resource.
A hawk physically attacks its opponent. A dove uses threat but avoids ght.
Hawk Dove
Hawk -1, -1 0, 2
Dove 2, 0 1, 1
Table: What Hawk and Dove gain
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Hawk-Dove Game
Two players compete for a limited resource.
A hawk physically attacks its opponent. A dove uses threat but avoids ght.
Hawk Dove
Hawk -1, -1 0, 2
Dove 2, 0 1, 1
Table: What Hawk and Dove gain
Each player wants to do the opposite of what the other player does.
Baek, Yongjoo Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Choosing Sides
Two cars meet on a narrow road.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Choosing Sides
Two cars meet on a narrow road. Each car can swerve to the left or to the right.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Choosing Sides
Two cars meet on a narrow road. Each car can swerve to the left or to the right. Left 0, 0 -1, -1 Right -1, -1 0, 0
Left Right
Table: Where to turn?
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Choosing Sides
Two cars meet on a narrow road. Each car can swerve to the left or to the right. Left 0, 0 -1, -1 Right -1, -1 0, 0
Left Right
Table: Where to turn?
Drivers want to cooperate to avoid collision.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Rock, Paper, Scissors
Rock Paper Scissors
Rock 0, 0 1, -1 -1, 1
Paper -1, 1 0, 0 1, -1
Scissors 1, -1 -1, 1 0, 0
Table: Prot Distribution of a Rock, Paper, Scissors Game
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Rock, Paper, Scissors
Rock Paper Scissors
Rock 0, 0 1, -1 -1, 1
Paper -1, 1 0, 0 1, -1
Scissors 1, -1 -1, 1 0, 0
Table: Prot Distribution of a Rock, Paper, Scissors Game
No Nash Equilibrium points.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
Prisoners Dilemma Hawk-Dove Game Choosing Sides Rock, Paper, Scissors
Rock, Paper, Scissors
Rock Paper Scissors
Rock 0, 0 1, -1 -1, 1
Paper -1, 1 0, 0 1, -1
Scissors 1, -1 -1, 1 0, 0
Table: Prot Distribution of a Rock, Paper, Scissors Game
No Nash Equilibrium points. Unable to predict the behavior of the opponent.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Mixed Strategy Nash Equilibrium
Pure Strategy
Each player chooses one strategy with probability 1 at each move.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Mixed Strategy Nash Equilibrium
Pure Strategy
Each player chooses one strategy with probability 1 at each move.
Mixed Strategy
Each player chooses randomly among possible strategies according to a probability distribution.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Mixed Strategy Nash Equilibrium
Pure Strategy
Each player chooses one strategy with probability 1 at each move.
Mixed Strategy
Each player chooses randomly among possible strategies according to a probability distribution.
At a Mixed Strategy Nash Equilibrium point,
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Mixed Strategy Nash Equilibrium
Pure Strategy
Each player chooses one strategy with probability 1 at each move.
Mixed Strategy
Each player chooses randomly among possible strategies according to a probability distribution.
At a Mixed Strategy Nash Equilibrium point,
At least one player is playing mixed strategies.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Mixed Strategy Nash Equilibrium
Pure Strategy
Each player chooses one strategy with probability 1 at each move.
Mixed Strategy
Each player chooses randomly among possible strategies according to a probability distribution.
At a Mixed Strategy Nash Equilibrium point,
At least one player is playing mixed strategies. Nothing is gained by changing ones probability distribution.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Mixed Strategy Nash Equilibrium
Pure Strategy
Each player chooses one strategy with probability 1 at each move.
Mixed Strategy
Each player chooses randomly among possible strategies according to a probability distribution.
At a Mixed Strategy Nash Equilibrium point,
At least one player is playing mixed strategies. Nothing is gained by changing ones probability distribution.
The general concept of Nash equilibrium includes mixed strategy Nash equilibrium. Nashs Theorem
There exists a Nash equilibrium in every nite, noncooperative games of two or more players.
Baek, Yongjoo Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Evolutionarily Stable Strategy
Generalized Hawk-Dove Game
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Evolutionarily Stable Strategy
Generalized Hawk-Dove Game
R(esource) < C(ost of ght)
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Evolutionarily Stable Strategy
Generalized Hawk-Dove Game
R(esource) < C(ost of ght)
Hawk Dove
Hawk (R C)/2, (R C)/2 0, R
Dove R, 0 R/2, R/2
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Evolutionarily Stable Strategy
Generalized Hawk-Dove Game
R(esource) < C(ost of ght)
Hawk Dove
Hawk (R C)/2, (R C)/2 0, R
Dove R, 0 R/2, R/2
The mixed Nash equilibrium point is at (R/C Hawk, (1 R/C) Dove). The population composition (R/C Hawk, 1 R/C Dove) is evolutionarily stable.
Baek, Yongjoo
Nash Equilibrium
Meaning of Nash Equilibrium Examples of Nash Equilibrium Mixed Strategy Nash Equilibrium
What is Mixed Strategy Nash Equilibrium? Application of Mixed Strategy Nash Equilibrium
Epilogue
Governing Dynamics of a Blonde and Two Suitors Blonde 0, 0 1, 2 Friend 2, 1 1, 1
Blonde Friend
Baek, Yongjoo
Nash Equilibrium
