Interactive module
Nash Equilibrium
Drag competitors and watch when no one wants to move alone.
Rule ledger
caseTwo milk tea shops choose where to locate between downtown crowds and suburban calm.
rule
u_i(s_i, s_-i) >= u_i(s'_i, s_-i) for every alternative s'_iquestionWhen one strategy changes alone, whose payoff or fairness changes first?
Milk Tea Location Game
Shop A profit
3480
Shop B profit
3480
Equilibrium signal
Keep dragging
How to read this result
When you drag a shop, profit follows customer density and distance from the rival. The glow does not mean globally perfect; it means moving alone is less attractive from this profile.Formula
u_i(s_i, s_-i) >= u_i(s'_i, s_-i) for every alternative s'_iA profile is stable when unilateral movement cannot improve anyone’s payoff.
Step-by-step Explanation
Scenario
Two milk tea shops choose where to locate between downtown crowds and suburban calm.
Why This Matters
Equilibrium explains why stable patterns can persist even when they are not perfect.
Beginner-Friendly Summary
A Nash equilibrium is a strategic resting point: each player is best-responding to the others.
Try changing the strategy and watch which result changes first.