Nash Equilibrium
Nash equilibrium is a concept of game theory where the optimal outcome of a game is one where no player has an incentive to deviate from his or her chosen strategy after considering an opponent's choice. Overall, an individual can receive no incremental benefit from changing actions, assuming other players remain constant in their strategies. Nash equilibrium is named after an American mathematician John Forbes Nash Jr., who originally presented it. Nash equilibrium is a situation in which one subject independently tries to maximize his/her own profit without collaborating with others. Under Nash equilibrium, even if only one subject changes its own act, the subject's profit will not increase from the current situation because each subject or organization has chosen an act that maximizes their own profits while taking others' acts into consideration. Therefore, no subject or organization has an incentive to change its own acts. Even though Nash equilibrium is caused...