Nash Equilibrium Explained in 5 Minutes
John Nash won the Nobel Prize for an idea so simple you can explain it in 5 minutes. Yet this idea revolutionized economics, predicted Cold War outcomes, explains why you’re stuck in traffic, and even helps explain evolution. Let’s understand Nash Equilibrium-the most important concept in game theory. The Core Idea (In One Sentence) A Nash Equilibrium is a situation where no player can improve their outcome by changing their strategy alone-everyone is doing the best they can given what everyone else is doing. ...