John Nash

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Issue:

History

 

Written by:

Tamara G

 

Date added:

July 12, 2015

 

Level:

University

 

Grade:

A

 

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3 / 598

 

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3991 times

 

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Nash's theory adds to the previous theory of von Newmann and Morganstern by stating that there does not always need to be a winner and a loser. In fact, it states that in a game each side will attempt to win to the best of his ability. The other player will know this and will attempt to counter the strategy of the other player...
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Eventually, an equilibrium point (also known as a Nash Equilibrium) will occur in the game, where each player neither wins nor loses. For example, pretend that there are two car dealers in a small town. Together, they have a monopoly on the car market in this town. When pricing cars, they can choose a high, medium, or low price...
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