Review article
NASH EQUILIBRIUM AND NASH BARGAINING SOLUTION: THE 1994 NOBEL PRIZE FOR ECONOMICS
Jasminka Šohinger
; Faculty of Economics, Zagreb
Abstract
Game theory, in its non-cooperative as well as in its cooperative
form, has acquired a central role in modern economics.
ln the analysis of strategic interactions it proved superior to the
traditional mathematical methods used in economic theory. This
paper deals with the two major concepts in game theory introduced
by John Nash, namely, Nash equilibrium, and Nash bargaining
solution, the elaboration of which brought John Nash the Nobel
Prize in Economics in 1994. In spite of its relative mathematical
sophistication, game theory has found numerous applicati-ons
in real life economic situations where strategic interactions are involved.
Keywords
Hrčak ID:
31745
URI
Publication date:
1.1.1997.
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