John Nash Ppt

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John Nash Ppt

  1. 1. John Nash By John Martin
  2. 2. What did my person do? • John Nash (1928 -) was an mathematician and economist. • He developed several theories that were relevant in understanding economic interaction. • His most important contribution was the theory of Nash Equilibrium. • He currently teaches at Princeton
  3. 3. Photos
  4. 4. • Nash Equilibrium is a concept originally developed to model simple games. • Effectively, it says this: For any two groups that do not cooperate, there will be a point at which neither group can benefit from unilateral action, and that the groups will hold their strategies constant at this point.
  5. 5. What this means • The Nash Equilibrium is not usually the most efficient strategy; it is only the best one without cooperation. • Through cooperation, it is likely that both parties will be able to increase their utility.
  6. 6. Why this is important to Economics • Since Nash Equilibria are usually not the optimal solutions, they highlight the benefits of communication between groups. • This communication is necessary; the unconscious laws of the market will not always produce the best solutions.
  7. 7. How this influences our thinking • Nash Equilibrium provides a strong case for government regulation, because a government can serve as a catalyst for change. • It can also prompt companies to make contracts with each other so they can cooperate and maximize utility.
  8. 8. Works Cited: • A Beautiful Mind: a biography of John Forbes Nash, Jr. New York: Simon & Schuster, 1998. Print. • The Essential John Nash. Princeton: Princeton UP, 2001. Print. • Game Theory: Lecture Transcript 5. Yale University. Yale. Yale University, 19 Sept. 2007. Web. 9 Feb. 2010. <http://oyc.yale.edu/economics/game- theory/contents/transcripts/transcript-5-nash- equilibrium-bad-fashion-and-bank>. • Nash Equilibrium and the History of Economic Theory. Chicago: Journal of Economic Literature, 1999. University of Chicago. University of Chicago, Mar. 1999. Web. 9 Feb. 2010. <http://home.uchicago.edu/~rmyerson/research/jelna sh.pdf>.

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