Nash Equilibrium

From GM-RKB
Jump to navigation Jump to search

A Nash Equilibrium is a Non-Cooperative Game Solution Concept in which each game player is assumed to know the equilibrium strategies of the other game players, and no game player can gain by changing their game strategy.



References

2016

2015

  • (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/Nash_equilibrium Retrieved:2015-5-17.
    • In game theory, the Nash equilibrium is a solution concept of a non-cooperative game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy.[1] If each player has chosen a strategy and no player can benefit by changing strategies while the other players keep theirs unchanged, then the current set of strategy choices and the corresponding payoffs constitutes a Nash equilibrium. The reality of the Nash equilibrium of a game can be tested using experimental economics method.

      Stated simply, Amy and Will are in Nash equilibrium if Amy is making the best decision she can , taking into account Will's decision while Will's decision remains unchanged, and Will is making the best decision he can, taking into account Amy's decision while Amy's decision remains unchanged. Likewise, a group of players are in Nash equilibrium if each one is making the best decision possible, taking into account the decisions of the others in the game as long the other party's decision remains unchanged.

  1. Osborne, Martin J., and Ariel Rubinstein. A Course in Game Theory. Cambridge, MA: MIT, 1994. Print.