Nash equilibrium theorem

The Nash equilibrium theorem, named after mathematician John Nash, describes a situation in game theory where players choose strategies that are optimal given the choices of others. In this state, no player can benefit by changing their strategy while others keep theirs unchanged. In simpler terms, it’s a point where everyone is making the best decision they can, considering what everyone else is doing. This concept helps understand competitive situations in economics, politics, and social sciences, highlighting how individuals or groups act when they know their decisions depend on others' actions.