Saturday, March 3, 2012

Nash Equilibrium Part III

Back in October of 2010, we mused about game theory and the Nash Equilibrium. If you missed that two part blog, start here.

Since that October posting, the staff here at Musings discovered a Kindle gem on Amazon--and, only 99c delivered instantly to my free Kindle reader on my laptop. It's a self-published book by a graduate student William Spaniel, who is, as he himself explains:
.... a PhD student in political science at the University of Rochester, creator of the popular YouTube series Game Theory 101, and founder of

Our posting was based on original source material by Princeton economist Alan Blinder published in 1982. But the same stuff is in Spaniel's e-book in Lesson 1.3: The Stag Hunt, Pure Strategy Nash Equilibrium, and Best Responses.

Actually, the Stag hunt is a popular explanation of the Nash Equilibrium, and you can find many references to it.

So, why is this a topic for project management? Because it's about getting to a balance, an equilibrium, and a win-win with important relationships:
  • Buyer/seller;
  • Stakeholder/project manager;
  • Functional manager/project manager 
  • User/project manager.

Anywhere and any time there might be a need to get to non-zero-sum, where no one loses everything, and there is privacy that inhibits open collaboration, then the Nash Equilibrium applies.

Here's a introductory video. When you look at it, think in terms of a project management strategy as a substitute for "law".