Here Prof. Dixit explains game theory and its impact on situations we encounter every day. "If Nash got a dollar for every time someone wrote or said 'Nash equilibrium,'" Dixit has said ...

Companies may use game theory to determine the Nash Equilibrium and see the benefit in their budgeting or pricing strategies. Game theory is the study of how and why players make decisions.

The economics committee first encountered John Nash's name in the mid-1980s. At that point game theory, the area where Nash did his Nobel-winning work, was as hot as any in the field of economics.