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The Nash Equilibrium is a concept of game theory where the optimal outcome of a game is one where no player has an incentive to deviate from his chosen strategy after considering an opponent's choice.

Overall, an individual can receive no incremental benefit from changing actions, assuming other players remain constant in their strategies.

The situation at the bar is an example of a game: the boys are the players and the actions they may choose (either "go for the blonde" or "go for a brunette") are called strategies.

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Every player wins because everyone gets the outcome they desire.

This was the newly born field of game theory fathered by the legendary John von Neumann (1903-1957).

Nash received the 1994 Nobel Prize in Economics for pioneering a revolutionary theory.

View class sessions » This Yale College course, taught on campus twice per week for 75 minutes, was recorded for Open Yale Courses in Fall 2007. One aim of the course is to teach you some strategic considerations to take into account making your choices.

Download all course pages [zip - 10MB]Video and audio elements from this course are also available on: Ben Polak is Professor of Economics and Management in the Department of Economics and the School of Management at Yale University. A second aim is to predict how other people or organizations behave when they are in strategic settings. We will learn new concepts, methods and terminology. Most of the reading for this course comes from the first ten chapters of Dutta or from the first two parts of Watson. The readings are not compulsory, but they will help back up the class material.