Principles of Microeconomics / Unit 9 MIC 0826 short lesson, about 20 seconds
Nash Equilibrium
Captions available
The idea
A Nash equilibrium is a set of strategies, one per player, where each choice is the best reply to the others', so nobody gains by changing alone. Every dominant strategy equilibrium is one.
In practice
Both confessing is a Nash equilibrium: given the other's confession, neither would switch.
Where people slip
The term is the exam's, from Nash's nineteen fifty paper; neither source uses it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it