Canonical · Game Theory & Strategy · Paper

Nash Equilibrium

John Nash · 1950

"In any strategic game, a stable outcome exists where no player can improve their result by changing strategy alone — everyone is already playing their best response to everyone else."

The idea

Nash proved it in one page in 1950: every game has at least one point where nobody can do better by switching strategy alone. That point isn't necessarily the best outcome for anyone — just the one nobody can unilaterally escape.

Why it works

The takeaway — recall it first

The Prisoner's Dilemma

"Two rational actors who cannot communicate or trust each other will often choose mutual betrayal even when mutual cooperation would leave both better off."

Merrill Flood and Melvin Dresher · ModelContinue→