A solution for each and every problem which can be handled strategically. John Nash, a famous Mathematician who suggested some improvements on the modern economics theory by Adam Smith.
As suggested by him, Nash Equilibrium is concept of non-co-operative game in which two players or three players are assumed to be know Equilibrium strategies of each player. According to this Equilibrium, if each and every player in group making a best decision for himself and also taking account of other player’s decisions. i.e. if each player will makes a best decision for himself and for group, so that group’s decision remain unchanged.
A Film was released “A Beautiful Mind” on John Nash. This film has inspired me to write on this Theory ” Nash Equilibrium”. with such difficulties in life with mental illness and having a paranoid schizophrenia, but then also he managed to get out of that mental illness and invented a non-co-operative game theory that will solve all the problems faced in Group while making decisions.
There is an example of a coordination game is the setting where two technologies are available to two firms with comparable products, and they have to elect a strategy to become the market standard. If both firms agree on the chosen technology, high sales are expected for both firms. If the firms do not agree on the standard technology, result in few sales. This is perfect example of Nash Equilibrium.
People are moving backward with Adam smith philosophy that the individual ambition will serves the best result, not considering the group’s decision. But I am more interested in the implementation of Nash’s theory in the real Life. If there is a possibility in today’s world, that the best result will come if an individual will makes best decision for himself and also for his group.