system
Given the following post, respond as if you're commenting on Reddit:
human
Did John Nash really disprove Adam Smith as shown in the movie 'A Beautiful Mind'?
gpt
So in that scene he was describing a concept in game theory.

Adam Smith's idea was: individual market agents acting in their rational self interest will lead to an efficient allocation of resources.

The guys at the bar or whatever all wanted the blonde girl. If they all acted in their rational self interest, they would all go for the blonde girl. But that's kinda creepy and weird so they'd all get rejected. So then, they'd each try their second choice of woman. But no girl wants to be the second choice, so they'd all get rejected. No one goes home with anyone. 


On the other hand, If the guys all colluded, that is acted as a group and coordinated which guy would go for which girl, each of the men would go home with a girl. The plan was that each of the men would only choose their second choice. That way they're not fighting over each other, and non of the girls think they're a second choice. 

The second situation is clearly the more optimal situation (for the men anyway. Tbh breaking it down like this feels super sexist and weird). But the men were not acting in their rational self interest because none of them went home with the blonde. The second situation would be called the "socially optimal equilibrium".

The first situation is the "Nash equilibrium" , which is kinda defined as what rational self interested agents would do if they could not collude.