Nash equilibrium lies at the heart of game theory, representing a condition in which every participant chooses a strategy that optimises their individual outcome given the strategies of the others.

The concept of Nash equilibrium has long served as a cornerstone in game theory, characterising a state where no player can benefit by changing their strategy unilaterally. Recent advancements have ...

I first learned my craft on Wall Street in the 1980s, a very different era, characterized by the bravado of Gordon Gekko’s “Greed is Good” speech. During that period, I was taught that all ...

Kohlberg, E. "Refinement of Nash Equilibrium: The Main Ideas." In Game Theory and Applications, edited by T. Ichiishi, A. Neyman, and Y. Tauman. San Diego: Academic ...

Discover the legacy of John Nash, the Nobel Prize-winning mathematician behind the Nash Equilibrium and a key figure in game ...

Nash equilibrium helps predict other investors' moves; no net gain by altering your long-term strategy. A dominant strategy excels regardless of others' actions, aiding investment decisions. Using ...

Daniel McNulty began writing for Investopedia in 2012. His work includes articles on financial analysis, asset allocation, and trading strategies. Michael Boyle is an experienced financial ...