Thought Toys · Games & choices · Exhibit 27

Nash equilibria

A Nash equilibrium is a quiet kind of trap: a set of choices where no single player can do better by changing their mind alone. It needn't be the best outcome — only the stable one. Drag the temptation to betray and watch cooperation stop holding together.

A two-by-two payoff grid for a symmetric game between you and another player, each choosing to cooperate or defect. Arrows in the gaps between cells point the way each player would switch to earn more; a cell that no arrow leaves is a Nash equilibrium and is ringed in amber.

Drag the temptation and watch the stable cells change.

Keyboard: focus the grid, then to choose the other player’s move and to choose yours — the token moves to that cell. Enter reads out where you are.

your turn — drag the temptation past the reward (3)

What you're seeing

Two players, each with the same choice: cooperate or defect. The grid lists what each walks away with — your payoff first, in amber; theirs in cyan. Mutual cooperation pays 3 each; mutual defection pays a meagre 1; and if one defects on a cooperator, the cooperator gets the sucker's 0 while the defector pockets the temptation — the number on the dial.

The little arrows are the whole story. A solid amber arrow says "you'd jump to that row to earn more"; a dashed cyan arrow says the same for the other player and the columns — colour and line style both mark whose move it is, so the grid still reads without colour. A cell that no arrow leaves — that neither of you can improve on by moving alone — is a Nash equilibrium. Drop the token anywhere and hit let them react: each player keeps switching to their best reply, and the token slides downhill along the arrows until it lands in such a cell and stops. The game locks.

Now the dial. While betrayal pays less than honest cooperation (T < 3), cooperating is your best reply to a cooperator, so both mutual cooperation and mutual defection are equilibria — a stag hunt, two stable worlds, one of them good. Drag T up past 3 and the arrows around the cooperative corner flip outward: now you always gain by defecting, so cooperation is no longer self-enforcing and its equilibrium vanishes. What's left is the lone, miserable cell where you both defect for 1 — a prisoner's dilemma. Nobody chose it together; it's just the only place no one can leave. That gap between what's stable and what's best is the whole uneasy point.

The rule, exactly. A strategy profile is a Nash equilibrium when each player's move is a best response to the others' — no one can raise their own payoff by deviating alone: ui(si, s−i) ui(si, s−i)   for every alternative si Here, with reward R=3, punishment P=1, sucker S=0, mutual defection is always an equilibrium (since P > S), while mutual cooperation is one only while T ≤ R. Verified in node (improve/verify/27-nash.js): the equilibrium count flips from two (stag hunt, T=2) to one (dilemma, T=5) at the threshold T=R, and best-response dynamics from all four starts lands in an equilibrium — collapsing to mutual defection whenever T > R. Counter-examples: the outcome that's best for both, mutual cooperation (3,3), is not the equilibrium in the dilemma — "the best outcome is what happens" is exactly the false intuition this breaks. And some games have no pure equilibrium at all: Matching Pennies, where one player wants to match and the other to mismatch, sends the arrows chasing in a circle forever — its only equilibrium is a mixed (randomised) one.

Also in Games & choices: Braess's paradox →

All 14 in Games & choices
  1. 10The evolution of trust
  2. 100The measure went up. The thing barely moved.
  3. 106They meet in the middle. The beach walks twice as far.
  4. 109Twice the soldiers is four times the army
  5. 116He told them nothing they did not already know
  6. 127The prize you only win when you have overpaid
  7. 129Everyone waits for somebody else
  8. 133A hundred prisoners and one sentence of agreement
  9. 27Nash equilibria — you are here
  10. 37Braess's paradox
  11. 47The secretary problem
  12. 67Better at both, and still better off trading
  13. 69Everyone was consistent. The vote wasn't.
  14. 97Same votes. Different winner.

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