Nash Equilibrium

A core concept in game theory proposed by John Nash, describing stable states in multi-player games. Awarded the Nobel Prize in Economics.

📖 Standard Introduction

Nash Equilibrium refers to a state in a game where each player's strategy is the optimal response to other players' strategies. At the Nash equilibrium point, no player can benefit by unilaterally changing their strategy.

Mathematical Definition: A strategy profile (s₁*, s₂*, ..., sₙ*) is a Nash equilibrium if and only if for every player i:

uᵢ(sᵢ*, s₋ᵢ*) ≥ uᵢ(sᵢ, s₋ᵢ*) 对所有 sᵢ 成立

💬 Plain Language Explanation

Nash equilibrium is a state where "no one wants to change their mind". Although it may not be the best outcome, if you change your strategy alone, you'll only make things worse for yourself.

🎯 Classic Examples:

  • Prisoner's Dilemma: Both betraying is the Nash equilibrium (though both cooperating would be better)
  • Traffic Choice: Everyone takes the fastest route, resulting in traffic jams
  • Price Competition: All businesses lower prices, reducing profits for everyone

🎮 Interactive Nash Equilibrium Finder

Click on cells to check if it's a Nash equilibrium

Player 2: Cooperate
Player 2: Defect
Player 1: Cooperate
3
3
0
5
Player 1: Defect
5
0
1
1
⭐ Nash Equilibrium

🏆 Nobel Prize

John Nash won the 1994 Nobel Prize in Economics for the Nash equilibrium theory. The movie "A Beautiful Mind" tells his story.

💼 Practical Applications

Widely applied in market competition, auction design, international relations, network routing, resource allocation and other fields.

🎲 Mixed Strategies

Nash proved that every finite game has at least one Nash equilibrium (which may be a mixed strategy).