BM3028 Behavioural Insights Assignment Report: Nash Equilibrium, Pareto Inefficiency, and Adam Smith’s Self-Interest Theory
Task – Critically assess the following statement: A Nash equilibrium is not necessarily the optimal solution that is jointly best for all players. Rational players will jointly choose an outcome which is not Pareto optimal, and therefore, refute Adam Smith’s insight that the rational pursuit of individual self-interest leads to socially desirable outcomes. 1.0 Sections … Read more