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HomeMIT 14.12 Economic Applications of Game Theory, Fall 2025Lecture 5: Nash Equilibrium
Lecture 5: Nash Equilibrium
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Lecture 6: Imperfect Competition
In this lecture, Ian Ball explains Nash equilibrium, a game theory idea that describes a situation where each person is choosing the best response to everyone else, so no one gains by changing alone. Using examples like two friends choosing between a Celtics game and a Red Sox game and a hide-and-seek game, the lesson also shows why people sometimes need to randomize their choices to avoid being predictable.