Equilibrium (Nash Equilibrium)

A Nash Equilibrium is a situation in a strategic interaction where each participant chooses their best possible action, considering the choices of others. In this state, no one can improve their outcome by unilaterally changing their decision. It represents a stable point where all players' strategies are aligned, and everyone is doing the best they can given what others are doing. Think of it like a balance point—once reached, players have no incentive to change their choices, because they’re optimized given the circumstances.