Is evolution like a well-tuned car that purrs down the road at a steady pace? Or is it more like an aging, rattling jalopy that often lurches forward? The aging jalopy is a handy metaphor for the ...

General equilibrium (GE) theory—long the domain of abstract economic models—has found unexpected relevance in today’s turbulent geopolitical and geofinancial landscape. Originally designed to model ...

Game theory is the study of how and why players make decisions about their circumstances. Using game theory, real-world scenarios for such situations as pricing competition and product releases can be ...

Christina Majaski writes and edits finance, credit cards, and travel content. She has 14+ years of experience with print and digital publications. Robert Kelly is managing director of XTS Energy LLC, ...

“Among all the Nobel Laureates in Economics, I have done the most abstract work,” Gérard Debreu said in 1985, two years after he’d received the Nobel Prize for his theory of economic equilibrium.

The theory did have its short comings, though. The Nash Equilibrium assumed that the players would not know anything about the other person’s strategy and completely undercut human emotions such as ...

The concept of Nash equilibrium has long served as a cornerstone in game theory, characterising a state where no player can benefit by changing their strategy unilaterally. Recent advancements have ...

Nash equilibrium lies at the heart of game theory, representing a condition in which every participant chooses a strategy that optimises their individual outcome given the strategies of the others.