What does nash equilibrium price actually mean?

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What does nash equilibrium price actually mean?

thx in advance

2007-08-11 18:50:00 · 2 answers · asked by Anonymous in Social Science ➔ Economics

2 answers

Adding to the previous comment:

The Nash equilibrium price is usually the same as the price obtained when the industry is perfectly competitive -- price equals MC and (in the long run) the minimum of the ATC curve.

2007-08-12 05:12:08 · answer #1 · answered by Allan 6 · 0⤊ 0⤋

If you model an industry using game theory, the Nash equilibrium price is the price that prevails when the industry reaches a Nash equilibrium.

2007-08-11 19:27:39 · answer #2 · answered by NC 7 · 1⤊ 0⤋