Episode Details

MIT 14.12 Economic Applications of Game Theory, Fall 2025
Instructor: Ian Ball
View the complete course: https://ocw.mit.edu/courses/14-12-economic-applications-of-game-theory-fall-2025/
YouTube Playlist: https://www.youtube.com/playlist?list=PLUl4u3cNGP63quuKvMHCt3cmTmt0O2qpv

In this lecture, Ian Ball explains Nash equilibrium, a game theory idea that describes a situation where each person is choosing the best response to everyone else, so no one gains by changing alone. Using examples like two friends choosing between a Celtics game and a Red Sox game and a hide-and-seek game, the lesson also shows why people sometimes need to randomize their choices to avoid being predictable.

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