The story of John Nash was captured in the movie A Beautiful Mind. The movie attempts to explain the Nash equilibrium with one striking blond woman and several brunettes at a bar. In the scene, all the men prefer the blonde. But Nash realizes, "If we all go for the blonde, we block each other. Not a single one of us is going to get her. So then we go for her friends. But they will give us the cold shoulder because no one likes being second choice. But what if no one goes for the blonde? We don't get in each other's way, and we don't insult the other girls. That's the only way we win." The scene ends with all the guys dancing with the brunettes while the blonde sits alone. Why is this NOT a Nash equilibrium?
A) Any one man will be better off switching to the blonde.
B) Two men would be better off if they coordinated to the same woman.
C) There is a high switching cost to pursue the blonde.
D) Women will respect the men more if they compete for their affection.

Question

Quizplus · Accepted Answer

Any one man will be better off switching to the blonde because she is the most desirable woman in the bar.

The Story of John Nash Was Captured in the Movie