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

4358 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is elasticity and why does it matter to economists?


What would be the effect of a rise in consumption in the economy, use a diagram to help illustrate this effect.


How does the law of diminishing marginal utility affect the demand for a Veblen good?


What is the profit maximising condition? (Hard A-Level question for full marks)


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