• 3437 views

    Lec 5 - Nash equilibrium: bad fashion and bank runs

    "Lec 5 - Nash equilibrium: bad fashion and bank runs" Game Theory (ECON 159) We first define formally the new concept from last time: Nash equilibrium. Then we discuss why we might be interested in Nash equilibrium and how we might find Nash equilibrium in various games. As an example, we play a class investment game to illustrate that there can be many equilibria in social settings, and that societies can fail to coordinate at all or may coordinate on a bad equilibrium. We argue that coordination problems are common in the real world. Finally, we discuss why in such coordination problems--unlike in prisoners' dilemmas--simply communicating may be a remedy. 00:00 - Chapter 1. Nash Equilibrium: Definition 09:31 - Chapter 2. Nash Equilibrium: Examples 23:13 - Chapter 3. Nash Equilibrium: Relation to Dominance 31:53 - Chapter 4. Pareto Efficient Equilibria in Coordination Games: The Investment Game 53:11 - Chapter 5. Pareto Efficient Equilibria in Coordination Games: Other Examples Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Fall 2007.

    Video is embedded from external source so embedding is not available.

    Video is embedded from external source so download is not available.

    Here is the next lecture for this course

    Watch NEXT
    LECTURE
    3782 views     Lec 11 - Evolutionary stability: cooperation, mutation, and equilibrium

    Lec 6 - Nash equilibrium: dating and Cournot

     01:12:06
    Lecture List | Course Details | Contents | Related

    No content is added to this lecture.

    Go to course:

    This video is a part of a lecture series from of Yale