Take a 2 person and 2 choice game.
Rule of the game:
A coin is tossed.
For Person A, he can call head (H) or tail (T).
If Person B calls the same, ie HH or TT, then A gets $1.
If A calls H and B calls T, then A loses $1.
The reverse is true for B.
In other words, if B calls H and A calls H, then B loses $1.
But if B calls T and A calls H, then B gets $1.
The game is played infinite number of times.
Interestingly, the following result is observed...
When A calls H and B calls H, A gains $1 and A continues to call H.
But B loses $1 and will switch to T.
Once B switches his choice, A realizes that he is losing money, so he will switch to T too.
They can keep playing and continue switching but neither party will gain or lose!
Well~ I thought this is an amazing game. No winner or loser and no Nash equilibrium!
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