Nash Equilibrium || Definition Minute || Behavioral Economics in Marketing
Nash Equilibrium is a fundamental concept in game theory that captures a situation in which each participant's strategy is optimal given the strategies chosen by others. Coined after mathematician John Nash, this equilibrium represents a state where no player has an incentive to unilaterally change their strategy, as doing so would not result in a better outcome for them. Essentially, it's a scenario where everyone's choices are interdependent, and no individual can improve their position by deviating from their current strategy, creating a stable and balanced situation in strategic decision-making. 📎 Definition Minute is a new subset of the Behavioral Economics in Marketing podcast. In these mini-episodes, I will define economic theories, in a minute or two. The topics will be review, introductory or discrete in nature. Behavioral Economics in Marketing Podcast | Understanding how we as humans make decisions is an important part of marketing. Behavioral economics is the study of decision-making and can give keen insight into buyer behavior and help to shape your marketing mix. Marketers can tap into Behavioral Economics to create environments that nudge people towards their products and services, to conduct better market research and analyze their marketing mix. Sandra Thomas-Comenole | Host | Marketing professional with over 15 years of experience leading marketing and sales teams and a rigorously quantitative Master’s degree in economics from Rensselaer Polytechnic Institute. Check out her Linkedin profile here: Sandra Thomas-Comenole, Head of Marketing, Travel & Tourism