Like the prisoner's dilemma, this economic idea is based on the concept of balanced threats, resulting in a somewhat limited applicability and frequent results which seem less than fair. Using the assumption that a game has a set of possible outcomes, each of which is associated with a utility for each of two players, it pr
Like the prisoner's dilemma, this economic idea is based on the concept of balanced threats, resulting in a somewhat limited applicability and frequent results which seem less than fair. Using the assumption that a game has a set of possible outcomes, each of which is associated with a utility for each of two players, it provides a unique solution which fulfills four requirements, that the solution fulfill Pareto optimality, is symmetric, independent of irrelevant options, and independent of the choice of utility function. FTP, what is this equilibrium which won its developer a share of the 1994 Nobel Prize in Economics?
Like the prisoner's dilemma, this economic idea is based on the concept of balanced threats, resulting in a somewhat limited applicability and frequent results which seem less than fair.
Nash equilibrium or Nash solution