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N Player Games
N Player Games
A) Short way
B) Freeway
Nash equilibrium
• In Nash equilibrium for this game, nobody
would want to change strategies.
• This will happen if 30=21+N/2, which implies
that N=18.
• So the Nash equilibrium is for 18 persons to
use the short way and everybody to spend 30
minutes commuting.
• Is this efficient? What would be efficient?
An efficient solution would minimize
total commuting costs.
Suppose that the class has C members.
Let x be the number of people who use short
road and C-x the number who use the freeway.