ABSTRACT
Game theory has been used to study a wide variety of human and animal behaviours. It
looks for states of equilibrium, sometimes called solutions. Nash equilibrium is the central
solution concept with diverse applications for most games in game theory. However some
games have no Nash equilibrium, others have only one Nash equilibrium and the rest
have multiple Nash equilibria. For games with multiple equilibria, dierent equilibria
can have dierent rewards for the players thus causing a challenge on their choice of
strategies. In this study, to solve the problems associated with existence of multiple
equilibria in games,we identied and computed the most ecient Nash equilibrium in such
experimental economic games. To achieve this we described and carried out an experiment
on a game that was modelled as a three-player experimental economic game. The results
were recorded and by the best response sets method we identied all the Pure Nash
equilibria and computed the most ecient Nash equilibrium for our experimental economic
game. Using the Brauwer's xed point theorem we veried the existence of mixed Nash
equilibrium in the experimental economic game. The ndings were that the most ecient
equilibrium varied from one player to the other. An individual whose aim was to minimize
risks played the risk dominant strategies whereas for those aiming to maximize their
prots, the payo dominant strategies were played in cooperation to achieve the most
ecient Nash Equilibrium for the experimental economic game. The computation of
most ecient Nash Equilibrium in games can be applied to most situations in competitive
Economic environment that are faced with multiple choices on which strategy is optimal.
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ONG'AWA, E (2021). Computation Of Efficient Nash Equilibria For Experimental Economic Games. Afribary. Retrieved from https://tracking.afribary.com/works/computation-of-efficient-nash-equilibria-for-experimental-economic-games
ONG'AWA, ESILABA "Computation Of Efficient Nash Equilibria For Experimental Economic Games" Afribary. Afribary, 05 May. 2021, https://tracking.afribary.com/works/computation-of-efficient-nash-equilibria-for-experimental-economic-games. Accessed 18 Dec. 2024.
ONG'AWA, ESILABA . "Computation Of Efficient Nash Equilibria For Experimental Economic Games". Afribary, Afribary, 05 May. 2021. Web. 18 Dec. 2024. < https://tracking.afribary.com/works/computation-of-efficient-nash-equilibria-for-experimental-economic-games >.
ONG'AWA, ESILABA . "Computation Of Efficient Nash Equilibria For Experimental Economic Games" Afribary (2021). Accessed December 18, 2024. https://tracking.afribary.com/works/computation-of-efficient-nash-equilibria-for-experimental-economic-games