Nash equilibrium
/ˌnæʃ ˌiːkwɪˈlɪbriəm/
a state where no player benefits by unilaterally changing strategy
Nash equilibrium in a sentence
“Both companies advertising heavily is a Nash equilibrium.”
Origin of Nash equilibrium
Named after John Nash, American mathematician (1928-2015)
Related Words
payoff
the reward or outcome a player receives from a strategy
dominant strategy
a strategy that yields the best outcome regardless of opponents' choices
zero-sum game
a situation where one player's gain equals another's loss
positive-sum game
a situation where all players can benefit simultaneously
prisoner's dilemma
a game where rational self-interest leads to worse collective outcomes
minimax
a strategy minimizing the maximum possible loss