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Human Interactions

Furthering the discussion on Nash equilibrium (NE), let us take an example of non-sequential (or simultaneous) Game Theory found in human interaction in everyday life. In a recent paper published by Drew Fudenberg and David K. Levine in the Fall 2016 edition of Journal of Economic Perspectives titled Whither Game Theory? Towards a Theory of learning in Games, the authors compare NE to rush hour traffic. They write, “the millions of players are the commuters traveling by car . . . the actions are the many different routes that they can take . . . Nash equilibrium holds when no commuter can save any time . . .

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