rediff ILAND
Welcome Guest, | Create your own iLand| Sign In  | New User? Get Started
BLOGS
iLand
Blogs
Friends/Contributors
Guestbook  
 
Harsha
Categories
Philosophy
Sports
Learning
Music
Food
Work
Blogs
Cricket
Travel
My Top Posts
True champions...
Are we smarter t...
Favourites 1
Sweetie SweetNoMore
What is an RSS feed?
RSS Feed 
searchofunknown.rediffiland.com/  
Wednesday 15 October, 2008
 10:27 | 10/Aug/2007 |  3 Comment(s)
  Add Harsha as Friend     Write to Harsha     Forward this link
The Nash equilibrium

The YouTube video showing (reported on CNN-IBN)  the buffalos rescuing a young calf from a bunch of lions is an amazing example of the collective action. It is very evident that the calf could be rescued only because the herd fought with the lions and clearly the lions were overpowered and outnumbered by the herd. But it is also important to note that what spurred the herd to take the unprecedented step to attack the lions was a brave buffalo that selflessly decided to do what it had to do, i.e. to rescue its calf at all costs. A great example of how things can work well if people can come together to deal with challenges that we face today.

 

 Usually each individual’s decision is based on what is right for his/her self. According to Dr Nash's Nash equilibrium theory, if we were to make a decision based on what is right for the self as well for the group, the outcome of the decision could benefit the group as a whole.

To get a sense of how the Nash equilibrium works, consider the following scenario. Twenty people are dining at a restaurant that offers a luxurious $20 meal and a simpler $10 meal. The diners have agreed that the group will split the bill evenly. Suppose each person, if he had to pay only his own bill, would prefer the $10 meal. Despite these preferences, it is not a Nash equilibrium for everyone to choose the cheap meal, since for each individual, switching to the expensive meal will cost him only 50 cents more. The only Nash equilibrium is for all the players to choose the $20 meal. Unfortunately, the decisions of each member of the group result in the least desirable outcome for the group as a whole.

 

Of course things are not as simple as stated above, for us to act collectively and for the above theory/assumption to work we need to know what are the thoughts/plans of individuals involved in a scenario. So, this may not work in all cases because not everyone will be forth coming with what they want and how they want to achieve it. But there are instances when things are in black & white, when it is easy to know what everyone wants, let us take an real life example, people pay bride because they are either trying to do something illegal or want to get things done fast at the cost of everyone else. Now, if nobody paid bribe there would be no reason for preferential treatment and everyone gets an equal opportunity, things would start to work as they should for everyone.

 

I guess things are much more complicated then I am assuming here but it does appear that if we stick to what is right for us and also the group, things would definitely improve ...

Category: Philosophy | Permalink