Good Essay On Basic Concepts of John Nash's Strategy and Scissor-Papers-Rock Game

Discussing Basic Concepts of John Nash’s Strategy and Scissor-Papers-Rock Game

Q.1
John Nash designed a strategic game that implants a psychological need to take the most logical decision in the given situation. The developer designed the game by keeping the fact in mind that people make decisions via keeping different variables under consideration. The players have to take a logical route that can maximize the benefit or minimize the loss as well (Thompson, 131). The military strategists are using the abovementioned philosophy in order to avoid war by taking civically valid decisions in response to those of hostile powers. Finally, Nash presented a concept of equilibrium when every player makes the most effective decision he or she can then, there forms a no win situation. However, the winners in the game thrive on expecting others to commit a strategic mistake while, the leaders have to ensure that their decisions are efficient according to the conventions of the game.
Q.2
Rock-Paper-Scissors game is a technique that people use in order to settle informal conflicts, and the game is made out of three concepts that are rated according to their relevant strength to outwit the opponent’s choice of symbolic weapon. The Rock beats the Scissors, and Paper gets cut by Scissors. However, paper is supreme to Rock, and therefore, one cannot predict the outcome of the game.
Q.3
The game of Rock-Paper-Scissors is finite because it operates with the help of players who engage intuitively, and they have to judge the choice of others with a specific number of outcomes of the event in their minds
Q.4
There is no pure strategy present to play the simplistic game because its design is based on the notion of chance, and as players do not know the choices of others so there is no way to plan a winning strategy in order to win the game every time. One can guess the most probable choices of a specific player in the light of experiences, and one has to pull up superior weapon against the presumed choices of the opponent.
Q.5
The best strategy in the abovementioned game is to pull up a superior choice to that of the opponent, and doing so will be based on pure luck rather than strategic planning.
Q.6

Following is the matricide representation of Rock-Scissors-Paper game’s available choices and resultant outcomes as well: -

Q.7
Nash defines a state of equilibrium as a condition in, which none of the player has any reason to change his or her choice after knowing those of other participants.
Q.8
In economic terms, the Nash’s equilibrium point is a state of affairs that does not warrant any change in the strategies because the players do not have any potential gain attached with the potential strategic modifications. Secondly, the new strategic outlook might offer less benefit to the players than the persons has already attained, or it carries more risk.
Q.9
a)

The game between Goofy and Mickey does have a Nash’s equilibrium at (4,7) and (4,1)

b)

The choices of players A and B coincident at (4,4) and (3,3) and therefore, the equilibrium exists at abovementioned coordinates.

c)
The equilibrium point of the final game exists at coordinates (4,8) and (9,5).

Works Cited

Thompson, Arthur. Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. New York: McGraw-Hill, 2013. Online.