History of economic thought

Why can't everyone agree on the best move in a game?

Imagine you're playing a game of chess with a friend. You both want to win, but there's no single move you can make that guarantees victory for both of you.

In chess, each player has their own strategy, but there's no one strategy that works perfectly for both players at the same time because each player's best move depends on what the other player does.

Example

If you move your knight to f3, your friend might respond by moving their queen to g4, which could lead to a different outcome than if you had chosen a different opening move.

Remember this

Nash Equilibrium explains that in non-cooperative games, there's no universally optimal strategy because each player's best move depends on the other player's actions.

Text adapted from Wikipedia, licensed under CC BY-SA 4.0.

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Educational content, not financial advice.

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