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Game TheoryManagement > Crisis Management > Lectures > Independent Research > Game Theory > Nash equilibrium
Nash EquilibriumNash Equilibrium is where two or more players of a game have no reason to deviate from their chosen strategies. Players cannot benefit from changing their strategy if the other players have not changed theirs, the resulting strategies and their payoffs result in a Nash equilibrium. If anyone changed their strategies then they would be worse off; staying the same is optimal for everyone. This is relevant to oligopolies, which copy each other and do not deviate from their strategies, as this may harm their profits or market share. Solution concept is where the equilibria of a game is determined, where players work out the strategies of other players and thus the outcome of the game.
Iterated elimination of dominant strategies (IEDS)
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