Nash Equilibrium
A Nash equilibrium is a strategy profile (a strategy profile specifies a strategy for every player, e.g. in the above prisoners' dilemma game (cooperate, defect) specifies that prisoner 1 plays cooperate and player 2 plays defect) in which every strategy is a best response to every other strategy played. A strategy by a player is a best response to another player's strategy if there is no other strategy that could be played that would yield a higher pay-off in any situation in which the other player's strategy is played.
Read more about this topic: Solution Concept
Famous quotes containing the words nash and/or equilibrium:
“Middle age is when you’ve met so many people that every new person you meet reminds you of someone else. . . .”
—Ogden Nash (1902–1971)
“They who feel cannot keep their minds in the equilibrium of a pair of scales: fear and hope have no equiponderant weights.”
—Horace Walpole (1717–1797)