John Nash, immortalized in the book and movie 'A Beautiful Mind,' died on this day in 2015, ending a dramatic story of genius.
But the original theory offered rigorous solutions only for two-person games where the winner won what the loser lost . Nash extended game theory both to cooperative situations and to competitive games with multiple players.
In such situations, “equilibrium” means that as long as everybody else maintains the same strategy, anybody changing strategies would suffer a worse outcome. So equilibrium describes a stable situation, in which nobody has any incentive to change strategies.
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