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.
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Famous quotes containing the words nash and/or equilibrium:
“Indoors or out, no one relaxes
In March, that month of wind and taxes,
The wind will presently disappear,
The taxes last us all the year.”
—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)