00:01
We're talking about nash equilibrium, which means we first need to have some idea what this is.
00:05
And a nash equilibrium is a set of strategies for the players where there is no incentive to deviate, no incentive to change your behavior, right? that given the strategies you and your opponent are playing, you don't want to try a different strategy.
00:22
And to illustrate that, let's just look at the options here.
00:26
So i'm going to draw these in different colors, which i feel helps a lot.
00:29
Player two can play left or right, whereas player one can also play top or bottom.
00:40
And let's look at the payoffs for player one first, right? so player one gets 50 and 40 and 25 and 10.
00:49
You can see that this is always better, right? that's what we would call a dominant strategy for one, right? one always wants to play top because top is better, right? you see the numbers on top are larger than the numbers on the bottom...