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. ...