Game Theory 101: Best Responses
Game Theory 101: The Complete Textbook on Amazon: http://www.amazon.com/gp/product/B005L7ANWC/ref=as_li_ss_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=B005L7ANWC&linkCode=as2&tag=gamthe101-20Finding pure strategy Nash equilibria was easy when there were only four outcomes. But if there are a lot more outcomes, say 16, going through each of them individually would be far too time consuming. This lesson shows how to find pure strategy Nash equilibria using the best responses method.To illustrate the concept, we use the safety in numbers game. Two generals decide whether to pass on fighting a battle or sending one, two, or three units. If at least one general decides not to fight or the generals send the same number of units, the game ends in a draw. Otherwise, the general with the most number of units wins.