Consider the driving game to the right. In many coutries drivers drive on the right hand side of the road, in other countries they drive on the left. But, no matter where you drive, it's best to do what the other drivers are doing. This simple payoff matrix illustrates this.

   In the US for example drivers use the right side, so you should too in the US. This is a Nash equilibrium. If you thought for some reason everyone was going to drive on the left tomorrow it would be smart for you to do the same. In England, on the other hand, people drive on the left so if you are driving in England you should drive on the left as well.

Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved