The maximum theoretical payout is 1000000.01 pounds. And since both players know this, and for any given tie amount, a player’s net can be increased by a penny by reducing their bid by a penny, they will recursively calculate to 0.
Unless they have a theory of mind and can model ways to take risks in order to increase results in the cases where the other player ALSO takes risks. We call this “trust”. and it can be greatly increased with communication, empathy, and side-agreements.
I think it’s long been known that Nash equilibria are not necessarily optimal, only guaranteed that the other player’s choices can’t hurt you. It’s perfectly defensive in adversarial games. This is great for zero-sum games, where the other player’s increase is exactly your decrease. It’s nearly irrelevant (except as a lower bound) for cooperative (variable-sum) games.
The maximum theoretical payout is 1000000.01 pounds. And since both players know this, and for any given tie amount, a player’s net can be increased by a penny by reducing their bid by a penny, they will recursively calculate to 0.
Unless they have a theory of mind and can model ways to take risks in order to increase results in the cases where the other player ALSO takes risks. We call this “trust”. and it can be greatly increased with communication, empathy, and side-agreements.
I think it’s long been known that Nash equilibria are not necessarily optimal, only guaranteed that the other player’s choices can’t hurt you. It’s perfectly defensive in adversarial games. This is great for zero-sum games, where the other player’s increase is exactly your decrease. It’s nearly irrelevant (except as a lower bound) for cooperative (variable-sum) games.