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Macro & Economy

Nash Equilibrium

Also called: Nash, equilibrium strategy

A Nash equilibrium is a set of strategies where nobody can do better by changing their own move alone. It is not necessarily the best outcome available — the prisoner's dilemma's equilibrium is worse for both players than cooperating. That gap between stable and good is exactly why bank runs, price wars and arms races persist: each participant is behaving rationally given everyone else.

Where this is taught

Definitions are the trailer. These free levels turn Nash Equilibrium into something you play — one bite-size lesson, with worked examples, a quiz and XP.

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