Friday, July 13, 2007

An Imperfect Equilibrium

An Imperfect Equilibrium

The Nash equilibrium is a kind of optimal strategy for games involving two or more players. If there is a set of strategies for a game with the property that no player can benefit by changing his strategy while the other players keep their strategies unchanged, then that set of strategies and the corresponding payoffs constitute a Nash equilibrium. Players will choose the strategies that form the equilibrium if it is played among completely rational players ...

And therein lies the rub ... (From Wikipedia)

 

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