Social Sciences
Economics
1950
AdvancedNash Equilibrium Condition
No player gains by unilaterally changing strategy when others hold theirs fixed.
By John Nash
Social Sciences
Nash Equilibrium Condition
1950 · John Nash
Why it matters: Explains oligopoly pricing, arms races, auctions, and evolutionary stability.
Discoverers: John Nash (1950)
What does it mean?
No player gains by unilaterally changing strategy when others hold theirs fixed.
Why should I care?
Explains oligopoly pricing, arms races, auctions, and evolutionary stability.
Variables & Units
| Symbol | Name | Unit | Meaning |
|---|---|---|---|
| Payoff | — | Player i utility | |
| Strategy | — | Equilibrium action | |
| Others' strategies | — | Fixed opponents |
Worked Example
Prisoner's dilemma: mutual defection is Nash though cooperation Pareto-dominates.
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No player gains by unilaterally changing strategy when others hold theirs fixed.
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