Partnering Contracts and the Inefficient Nash Equilibrium

The Possibility of Inefficient Corporate Contracts

Nash equilibrium

In game theory, Nash equilibrium (named after John Forbes Nash, who proposed it) is a solution concept of a game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only his own strategy unilaterally. If each player has chosen a strategy and no player can benefit by changing his or...

Nash Equilibrium and Dynamics

Presented at the Opening Panel of the Conference in Honor of John Nash’s 80th Birthday at Princeton University in June 2008. Updated: October 2010. Center for the Study of Rationality, Institute of Mathematics, and Department of Economics, The Hebrew University of Jerusalem. e-mail : [email protected] web page: http://www.ma.huji.ac.il/hart I have seen “nash equilibrium” in print, as if “nash” we...

Beyond the Nash Equilibrium Barrier

Nash equilibrium analysis has become the de facto standard for judging the solution quality achieved in systemscomposed of selfish users. This mindset is so pervasive in computer science that even the few papers devoted todirectly analyzing outcomes of dynamic processes in repeated games (e.g., best-response or no-regret learningdynamics) have focused on showing that the perform...

The Nash equilibrium: a perspective.

In 1950, John Nash contributed a remarkable one-page PNAS article that defined and characterized a notion of equilibrium for n- person games. This notion, now called the "Nash equilibrium," has been widely applied and adapted in economics and other behavioral sciences. Indeed, game theory, with the Nash equilibrium as its centerpiece, is becoming the most prominent unifying theory of social sci...