Winning Strategies: Simultaneous Move Games and Nash Equilibria

In this lesson, Professor Yana Gallen dives into game theory, explaining how it helps economists analyze strategic decision-making, where the outcomes of one player depend on both their own actions and the actions of others at the same time. The lesson uses examples like coffee shops competing in advertising and the tragedy of the commons to explain Nash equilibria, where players reach a set of strategies with no incentive to change.