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Nash Equilibrium: Definition and Examples

Nash Equilibrium: Definition and Examples

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What is Nash Equilibrium?

It is a concept in game theory in which every participant in a noncooperative game can optimize their outcome based on the other players’ decisions.

Nash equilibrium is achieved in a game when no player has any incentive for deviating from their own strategy, even ...

Example: Battle of the sexes

A man and a woman are hoping to attend an event together, but they must choose between a prizefight or a ballet.

They cannot communicate where they will go beforehand, and the man in this story would prefer to go to the prizefight while the woman in this scenario would like...

How to Find Nash Equilibrium

To find it, share each player’s strategy with every other player. If the players do not change their strategies, you have found the Nash equilibrium.

For eg, in the battle of the sexes scenario, draw a table with two rows and two columns. 

The vertica...

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