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Game Theory is a concept which was developed by John Von Neumann, an imminent polymath. The fundamental concept of this theory revolves around the concept of understanding the strategies through which two or more competing forces interact. There are numerous solutions to this theory. One of the more popular ones is called ‘Nash Equilibrium’.

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**What is Nash Equilibrium? **

Going by definition, the Nash Equilibrium is a game theory solution structure. It is applicable when there is a non- cooperative game between two or more participating parties. Here a no cooperative situation means where all parties are in equilibrium. And each party knows the strategy of the other. So, none of the players will gain anything by changing their strategies.

Economics and mathematics students usually deal with this Nash equilibrium routinely. But the main application of this concept lies in experimental economics. This is because; game theory is fitted specifically for understanding the complicated economic phenomenon. And as Nash equilibrium is one of its main solution concepts; students can conveniently use the equilibrium in economics.

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**How does Nash Equilibrium work? **

You must understand that this method is applicable only in certain situations. In other words, there are certain events which make up the Nash Equilibrium. For instance, under this method, both parties should gain nothing by changing their equilibrium strategies.

**Example:**

Let’s say, you and your friend are in Nash Equilibrium. Then you or your friend cannot gain anything from changing your strategies. So, here you are trying to change your strategy, keeping your friend’s strategy as a fixed entity. Hence, no matter what you do your technique should not influence your friend’s game plan.

**What are the major variations of Nash Equilibrium? **

In our guide to **finding all mixed strategy Nash equilibria assignment help**,we discuss the various ways through which you can project this theorem. Now, when it comes to variations of the said concept; there are predominantly two types;

**Pure strategy****of Nash equilibrium**–

Here, there is a detailed, play by play description of a participant’s game plan. It is primarily applicable for determining how a player will react under various circumstances.

**Mixed strategy-**

Under this concept, participants can choose between one or more pure strategies. So, you can see that there is an element of probability in this situation. In this case, players enjoy more flexibility and choose their strategies more freely.

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