Next video:
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 Articles
  1. Investing

    Game Theory: Beyond The Basics

    Take your game theory knowledge to the next level by learning about simultaneous games and the Nash Equilibrium.
  2. Investing

    A New CEO Takes the Reins at CarMax

    CarMax (NYSE: KMX) is driving into September with a new executive at the wheel. Bill Nash began his reign as CEO at the beginning of the month, succeeding the freshly retired Tom Folliard. Nash ...
  3. Insights

    What Is Equilibrium?

    Equilibrium is a state of balanced supply and demand.
  4. Insights

    The Basics Of Game Theory

    Break down and examine the potential consequences of economic/financial scenarios.
  5. Insights

    Drugmakers Eye $35B Market Amid Obesity Crisis

    Some large drug companies are working hard to develop a treatment that could generate a big payout.
  6. Investing

    Gilead Sciences to Focus on NASH and HIV Drugs

    Gilead will continue to develop NASH and HIV drugs in 2017.
  7. Investing

    Will This Drug Beat Gilead to Market in NASH? (GILD, ICPT)

    A race of sorts is on between Gilead Sciences (NASDAQ: GILD) and Intercept Pharmaceuticals (NASDAQ: ICPT). In a bid to be the first to win approval for a medicine for the treatment of nonalcoholic ...
  8. Investing

    Gilead Pays $200M Milestone for Liver Drug (GILD)

    Gilead Sciences made a $200 million milestone payment to Nimbus Therapeutics for its drug to treat fatty liver disease.
  9. Investing

    Bristol-Myers Sinks $100M in NASH, Fibrosis (BMY)

    Bristol-Myers will pay $100 million to Japanese drug firm Nitto to develop a liver fibrosis drug.
  10. Insights

    Galectin Tanks on Failure of NASH Treatment (GALT)

    Galectin shares plunge after test results on advanced fibrosis patients miss their primary goal.
Hot Definitions
  1. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  2. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  3. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
  5. Wash-Sale Rule

    An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security ...
  6. Porter Diamond

    A model that attempts to explain the competitive advantage some nations or groups have due to certain factors available to ...
Trading Center