Nash equilibrium: An outcome in which no player can improve their payoff by unilaterally changing their strategy.
How to apply it: Find the Nash equilibrium in a payoff matrix by checking whether either player has an incentive to deviate.
Course: AP Microeconomics · Unit: Imperfect Competition
Practice questions about Nash equilibrium on AimFive — get rubric-based feedback showing exactly which points you earned.
AP and Advanced Placement are trademarks of College Board. AimFive is not affiliated with or endorsed by College Board.