Nash Equilibrium Non-Cooperative Game

Industrial & Systems Engineering

How It Works

In non-cooperative game theory, a Nash equilibrium represents a strategic profile in which no player has an incentive to unilaterally deviate from their chosen strategy given the strategies chosen by all other players. In a two-player payoff matrix, best-response correspondence identifies the stable intersection point where mutual payoffs are maximized under strategic independence.

Governing Equation
u_i(s_i*, s_-i*) ≥ u_i(s_i, s_-i*)   ∀ s_i ∈ S_i