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To: dvdw© who wrote (3286)	5/29/2010 10:24:09 AM
From: dvdw©	Read Replies (1) \| Respond to of 3821

Nash equilibrium From Wikipedia, the free encyclopedia Jump to:navigation, search Nash Equilibrium A solution concept in game theory Relationships Subset of Rationalizability, Epsilon-equilibrium, Correlated equilibrium Superset of Evolutionarily stable strategy, Subgame perfect equilibrium, Perfect Bayesian equilibrium, Trembling hand perfect equilibrium, Stable Nash equilibrium, Strong Nash equilibrium Significance Proposed by John Forbes Nash Used for All non-cooperative games Example Rock paper scissors In game theory, Nash equilibrium (named after John Forbes Nash, who proposed it) is a solution concept of a game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only his or her own strategy unilaterally. If each player has chosen a strategy and no player can benefit by changing his or her strategy while the other players keep theirs unchanged, then the current set of strategy choices and the corresponding payoffs constitute a Nash equilibrium. Stated simply, Amy and Bill are in Nash equilibrium if Amy is making the best decision she can, taking into account Bill's decision, and Bill is making the best decision he can, taking into account Amy's decision. Likewise, a group of players is in Nash equilibrium if each one is making the best decision that he or she can, taking into account the decisions of the others. However, Nash equilibrium does not necessarily mean the best cumulative payoff for all the players involved; in many cases all the players might improve their payoffs if they could somehow agree on strategies different from the Nash equilibrium (e.g., competing businesses forming a cartel in order to increase their profits). much more at link see also the additional works. en.wikipedia.org