This is the scene where John Nash finally discovers the revolutionary idea he's been searching for, Governing Dynamics (or what is now known as Nash Equilibrium). However, the movie completely misrepresents the concept.
"Adam Smith needs revision. If we all go for the blonde, we block each other - not a single one of us is going to get her... What if no one goes for the blonde? We don't get in each other's way... It's the only way we win.
The best result will come from everyone in the group doing what's best for himself... and the group. Adam Smith was wrong."
So there we have it. The theory of the Invisible Hand has been demolished. Well, at least that's what some bloggers across the web have claimed, based on this clip.
In reality, Nash's theory of Governing Dynamics was not meant to be a critique of Adam Smith, nor was it a recommendation for social organization. It's simply a theory that can be used to predict the outcomes of certain situations.
In other words, Nash wasn't saying, "We need to consider the group, not just self-interest." Nash was saying that human action *IS* influenced by the actions of others. In the clip, it is in everyone's self interest to not go for the blonde. It has nothing to do with concern for the overall group. An individual from the group must simply take into accord the actions of the others in the group, in order to make the correct, self-interested decision.
Nash was not concerned with how society should function. His theory deals with the reality of self-interested human action.
I just needed to get that off my chest. Carry on.
I just needed to get that off my chest. Carry on.
