Nash equilibrium – A strategy of games theory

The paper presents an overview of the concept of Nash Equilibrium and its importance in application of games theory. Beginning with the history of Nash Equilibrium, its relevance in understanding and analyzing the outcome of strategic interactions in decision-making is elucidated with examples. Prisoners’ Dilemma, Coordination game, network traffic, competition game, matching pennies, stag hunt - are some of few strategic concepts/games that exemplify the Nash Equilibrium and help in decision-making. The articles further throws light on – best response functions, dominant actions of players (which further looks at strict domination and weak domination by players), equilibrium in a single population situation and in collective decision-making situation.