%! TEX root = TA.tex % vim: tw=50 % 01/02/2024 12PM Two people two outcomes: \begin{align*} A(\bf{p}, \bf{q}) &= \sum p_i a_{ij} q_j \\ B(\bf{p}, \bf{q}) &= \sum_i p_i a_{ij} q_j \end{align*} Von Neumann zero sum games: $a_{ij} = -b_{ij}$. Then can show there exists $\bf{p}^*, \bf{q}^*$ such that \begin{align*} A(\bf{p}^*, \bf{q}^*) &= \sup_f \inf_{\bf{q}} A(\bf{p}^*, \bf{q}) \\ B(\bf{p}^*, \bf{q}^*) &= \sup_f \inf_{\bf{p}^*} B(\bf{p}^*, \bf{q}^*) \end{align*} \begin{center} \begin{tabular}{c|c|c} & you admit & you don't admit \\ \hline he admits & $2$ & $8$ \\ \hline he does not admit & $\half$ & $1$ \end{tabular} \end{center} Nash showed that there is at least one $(\bf{p}^*, \bf{q}^*)$ such that \begin{align*} A(\bf{p}^*, \bf{q}^*) &\ge A(\bf{p}, \bf{q}^*) \qquad \forall \bf{p} \\ B(\bf{p}^*, \bf{q}^*) &\ge B(\bf{p}^*, \bf{q}) \qquad \forall \bf{q} \\ \end{align*} That is to say there is no reason unilaterally to change your choice. \begin{proof} Use \nameref{brouwer}. Let \[ \Gamma = \{(p, 1 - p, q, 1 - q) : 1 \ge p \ge 0, 1 \ge q \ge 0\} \] 2 dimensional square. We will define $T : \Gamma \to \Gamma$. First define $u_1$: \[ u_1 = \max(A(1, 0, q_1, q_2) - A(p_1, p_2, q_1, q_2), 0) \] $u_1 > 0$ if worth moving towards $(1, 0)$ for $\bf{p}$. $u_1$ is continuous. Define \[ u_2 = \max(A(0, 1, \bf{q}) - A(\bf{p}, \bf{q}), 0) \] and similarly define $v_1, v_2$ for $q$. Then we define \[ T(\bf{p}, \bf{q}) = \left( \frac{p_1 + u_1}{1 + u_1 + u_2}, \frac{p_2 + u_2}{1 + u_1 + u_2}, \frac{q_1 + v_1}{1 + v_1 + v_2}, \frac{q_2 + v_2}{1 + v_1 + v_2} \right) \] $u_1, u_2$ continuous, and $u_1, u_2 \ge 0$ gives that \[ \frac{p_1 + u_1}{1 + u_1 + u_2} \] is a continuous function of $(\bf{p}, \bf{q})$. Also, $\frac{u_1 + p_1}{1 + u_1 + u_2} \ge 0$ and \[ \frac{u_1 + p_1}{1 + u_1 + u_2} + \frac{u_2 + p_2}{1 + u_1 + u_2} = \frac{u_1 + u_2 + p_1 + p_2}{1 + u_1 + u_2} = 1 .\] Similarly for $u_2, v_1, v_2$. So $T$ is a continuous map from $\Gamma$ to $\Gamma$. Thus there is at least one fixed point. Since at most one of $u_1, u_2$ is non-zero, we may suppose $u_2 = 0$. But $T(\bf{p}^*, \bf{q}^*) = (\bf{p}^*, \bf{q}^*)$, so $u_1 = u_2 = 0$ so either $1 > p_1 > 0$ and $A(1, 0, \bf{q}^*) = A(0, 1, \bf{q}^*) = A(\bf{p}, \bf{q})$ so no reasn for $A$ to change (note $A(p, q)$ is affine in $p_1$). Otherwise, $p_1 = 0$ or $p_1 = 1$. Without loss of generality, $A(1, 0, \bf{q}) \ge A(1 - p', p', \bf{q})$, but we cannot. \end{proof} \begin{example*}[Game of chicken] $A$ and $B$ drive cars towards each other. If both swerve, they both lose $1$ prestige point. If one swerves and the other does not, then the swerver loses $5$ points and the swerver gains $10$ points. If neither swerves, then both lose $100$ points. \[ A(p, q) = -pq - 5p(1 - q) + 10(1 - p)q - 100(1 - p)(1 - q) \] Easiest to differentiate: \begin{align*} \pfrac{A}{p} &= -q - 5(1 - q) - 10q + 100(1 - q) \\ &= 95 - 106q \end{align*} so if $\pfrac{A}{p} = $, then $106q = 95$, so $q = \frac{95}{106}$. This tells us that $\left( \frac{95}{106}, \frac{95}{106} \right)$ is a Nash point. However, we have only examined interior points (because a local extrema is only found by $\pfrac{A}{p}$ if it is not on the boundary). We must check $p = 1$ for example. Upon doing this, we also find that $(1, 0)$ and $(0, 1)$ are Nash points. \end{example*} \begin{remark*} Recall that \nameref{brouwer} has a multidimensional extension. It is quite easy to extend from $2$ people, $2$ choices to $2$ people, $n$ choices. It can also be extended to more than $2$ players (which Von Neumann can't). However, what Nash then says is that there exist points $(p^*, q^*, v^*)$ where it is to no player's advantage to change unilaterally. This is much weaker than it sounds. Winkn, Blykn and Nod who must divide $\pounds 90$ by majority vote. \end{remark*}