(In economics and game theory) a stable state of a system involving the interaction of different participants, in which no participant can gain by a unilateral change of strategy if the strategies of the others remain unchanged.
- In the language of game theory, a Nash equilibrium is reached when boundary spanners know what their counterparts will do and can make the best responses to achieve maximum joint payoffs.
- Yeah, it wasn't the peace prize, it was a Nobel prize in economics for something called game theory and the Nash equilibrium, which incidentally, he did in a paper when he was in his early 20s at Princeton.
- The locational result in which both firms are located at the centre of the market is the Nash equilibrium for this particular locational game.
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