Summary 
by : Lunatic Economist (0001234567)


John Nash, a Nobel Prize winner in economics, is the subject of the 2001 Hollywood movie A Beautiful Mind. The film, loosely based on the biography of the same name, focuses on Nash's mathematical genius and also his schizophrenia.

In game theory, the Nash equilibrium is a solution concept of a non-cooperative game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy.[1] If each player has chosen a strategy and no player can benefit by changing strategies while the other players keep theirs unchanged, then the current set of strategy choices and the corresponding payoffs constitute a Nash equilibrium.

Stated simply, Amy and Will are in Nash equilibrium if Amy is making the best decision she can, taking into account Will's decision, and Will is making the best decision he can, taking into account Amy's decision. Likewise, a group of players are in Nash equilibrium if each one is making the best decision that he or she can, taking into account the decisions of the others in the game.


References:
  • John Forbes Nash, Jr.
    • http://en.wikipedia.org/wiki/John_Forbes_Nash,_Jr. [accessed 29/082014]