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:
“If you are really Master of your Fate,
It shouldn’t make any difference to you whether Cleopatra or the Bearded Lady is your mate.”
—Ogden Nash (1902–1971)
“There is a relation between the hours of our life and the centuries of time. As the air I breathe is drawn from the great repositories of nature, as the light on my book is yielded by a star a hundred millions of miles distant, as the poise of my body depends on the equilibrium of centrifugal and centripetal forces, so the hours should be instructed by the ages and the ages explained by the hours.”
—Ralph Waldo Emerson (1803–1882)