Question

you have just played rock-paper-scissors with your friend. you chose scissors and they chose paper, so you won. is this a nash equilibrium? explain why or why not.

Answer 1

Your win in rock-paper-scissors is not a Nash equilibrium because your friend would change their strategy to avoid losing again, which is not what occurs in a Nash equilibrium situation.

Step-by-step explanation:

In your scenario where you chose scissors and your friend chose paper in a game of rock-paper-scissors, and you won, this would not be a Nash equilibrium. A Nash equilibrium occurs when no player can benefit by changing their strategy while the other players keep their strategies unchanged.

If this was a repeated game and both you and your friend made your choices simultaneously and without knowledge of the other's choice, your friend would have a clear incentive to switch to scissors or rock to avoid losing again, indicating the game has not reached a Nash equilibrium.

In the context of economic theory, Nash equilibrium is about predicting the outcome of strategic interactions, where individuals take into account others' decisions.