Watch this video and you will realize something. This is a scene in 'A beautiful Mind' and it is really an impactful scene that I had goosebumps after watching it.
"If we all go for the blonde, we block each other, not a single one of us is gonna get her. So then we go to her friends...."
In the end, they would all benefit and the blonde is the loser. Funny but really, it is gonna stay in your head, believe me.
A conversation between men wanting one specific girl, and a life changing fact that you can gain. Individual ambition serves a common goal.
John Nash got this idea when he and his friends got in a situation where they would approach a blonde girl, however,
it is impossible that all of them will win, so he suggested that no one gets the blonde and they should just approach her friends instead of blocking each other off. In the end, they would all benefit the situation.
From what I learned, Nash Equilibrium is about the outcome that takes place when the players in the society are in their best shoes with their best decisions, taking into account that other players in the society remain with their decision as well. It is about the situation wherein no player will benefit by changing a strategy if each player has already remained with their state.
After the scene in the bar, I realized how vital Nash Equilibrium is in being applied to economics. If all citizens could benefit to the situation where all players in the government and administration could think rational without having to take others down for their own selfish reason, then the state of our country would be better. If the players in the society, including us citizens, would remain sensible with our decision and lifestyle, bearing in mind that the outcome should be about our nation’s improvement and not about self-centered demands, it is possible to have progress sooner.
If Nash Equilibrium takes a deep part of the critical analysis of our state, it would help lessen the impact of political controls that are most often than not just about political desires to dominate and destruct what we entrusted to them. Truth is, progress is not about plans but about execution. However, if it all started wrong in the first place then we can assume that the outcome will not be favorable to many. Rationality doesn’t require monetary return and the decision-makers our country assigned shall not act as if it is hard to develop.
Imagine that we can all have the
power to be compassionate and careful in our judgment
The situation would turn out to be less egotistic and more humanitarian. Just like what Mr. Nash envisioned, we don’t always have to fight to get what we thought is the best; instead, we should be considerate to avoid spoiling the benefit that could be to everyone. Involving ourselves in discussion and arguments must not be always about winning as one, but winning as a whole.
Nash equilibrium may be complicated but applying it to economics would benefit the country as a whole.
We are aware that traditional policies may not be enough right now generate progress, thus, Nash equilibrium may help for what it’s worth. It is what we hope to accomplish, to have a nation with rational citizen and leaders that are not afraid to stand back just to give way to a more profound solution to achieve the optimum level of progress our nation can very well attain.
I'd actually love to see this applied to the economy but then with the capitalist mentality already so deeply rooted here ;;-;; I'll just wonder what can be done to adapt it. I mean, each sector has a common goal and that should be "to serve the people" but that ain't happening