What effect does the Nash equilibrium have on consumers and over time on the industry itself?
Are there any real world (historic or current) examples of this?
First, let's think about what Nash equilibrium means in a business situation. It applies in industries where rival firms compete with each other and can choose different strategies to maximize their profits. It generally would not apply in the cases of perfect competition and monopolistic competition, because there are simply too many players. But in oligopolies it certainly is applicable. It ...
The use of Nash equilibrium to make predictions in real world industries