Nash Equilibrium
Game TheoryDecision MakingStrategy
Nash Equilibrium occurs when players in a game choose strategies that no one benefits from changing unilaterally.
Introduction
Nash Equilibrium occurs when players in a game choose strategies that no one benefits from changing unilaterally.
Core Principles
- Strategic Stability: No incentive for individual deviation.
- Mutual Best Response: Players' strategies complement each other.
- Practical Analysis: Applied to predict outcomes in competitive scenarios.
Applications
- Market analysis for pricing strategies.
- Negotiation dynamics for stable agreements.
Related Resources
- Book: "A Beautiful Mind" by Sylvia Nasar.
- Tools: Game theory simulation software.