What is a Nash Equilibrium?

A Nash equilibrium is a common solution concept used in game theory for non-cooperative (i.e. players cannot work together or communicate), 2+ player games where given all other players' strategy choices, each player can do no better by changing his own strategy. 

Suppose there are two players, A and B, that can choose to play either strategy X or strategy Y.  Player A and Player B both playing strategy X (i.e. A,B: {X,X}) is a Nash Equilibrium if and only if neither player can increase her payoff by deviating to playing Y holding constant the other player's strategy at X.  Note, there can be multiple Nash Equilibria in a game.

RC
Answered by Raees C. Economics tutor

4359 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Microeconomics: Discuss the Benefits of a Minimum Wage?


Why does the Price Mechanism exist and what are the functions of it?


What is the difference between accounting and economic profit?


With over 12.7 million mobile phone contracts being offered in the UK, is it possible for a consumer to make a rational decision when selecting a mobile phone tariff?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning