Fact checked by Vikki Velasquez Reviewed by Michael J Boyle Game theory is the study of how and why players make decisions ...

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 ...

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.

Nash Equilibrium is a fundamental concept in game theory that describes a situation where no player can benefit by changing their strategy while the other players keep theirs unchanged.