Stable but Stuck: When Nash Equilibria Produce Bad Outcomes
Reading Eliezer Yudkowsky’s Inadequate Equilibria sent me back to a familiar problem: systems in which many participants can recognise a better outcome, yet no one can reach it safely alone. This is often where the language of Nash equilibrium enters the discussion. It is a useful concept, but only if it remains narrower than our ordinary idea of a system being “stuck”. In John Nash’s original formulation , an equilibrium is a combination of strategies in which no player can improve their own payoff by changing strategy alone while everyone else’s strategy remains fixed. The definition says nothing about whether the outcome is fair, efficient, desirable or unique. Nor does it require the world to stop changing. It identifies a form of strategic stability: given what everyone else is doing, unilateral deviation does not pay. That distinction explains how individually defensible choices can assemble themselves into a collectively poor result. The obstacle may not be ignorance, malic...