The Nash Equilibrium

Loading the player...

Game theory in general looks at how individuals or groups make choices that will, in turn, affect other parties' choices. Nash Equilibrium refers to a condition in which every participant has optimized its outcome, based on the other players' expected decision.
 
In summary, game theorists look at decisions, not in isolation, but as part of a system of interactions.


Related Videos

  1. Prisoner's Dilemma

    Learn more about this classic game theory scenario.
  2. Behavioral Finance

    Can psychology-based theories explain stock market anomalies?
  3. Efficient Market Hypothesis

    An investment theory that states it is impossible to "beat the market".
  4. Law Of Diminishing Marginal Utility

    Learn about this law of economics related to consumption.
  5. Positive And Normative Economics

    Learn the difference between these two declarative statements and what they mean in the world of economics and finance.
  6. Explaining Economies Of Scale

    Is bigger always better? Learn about the important and often misunderstood concept of economies of scale.

comments powered by Disqus
Trading Center