what is nash equilibruim and what will happen to total benefits to industry participants, if the industry is in nash qquilibruim?
they are doing the best thing that fits their interests…they are both cheating not sure of total benefits to industry participants, i guess it means they cant get screwed as bad as not cheating…efficiently working? im terrible
nash equlibruim happens when the competitors leave themselves to their own strategy and do not mind what other guy is doing and in turn they reduce the total benifts because of low or no competition in the industry.
Investopedia Says… ------------------------------ 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. A game may have multiple Nash equilibria or none at all. This concept is named after its inventor John Nash and is incorporated in multiple disciplines (ranging from behavioral ecology to economics). If you want to test for a Nash equilibrium, simply reveal each person’s strategy to all players. The Nash equilibrium exists if no players change their strategy, despite knowing the actions of their opponents. For example, let’s examine a game between Tom and Sam. In this simple game both players can choose: A) received $1, or B) lose $1