Definition Competitive Markets
where Supply and Demand meet
- aka Equilibrium Price / Market Price
Definition Game Theory
a situation where nobody wants to change anything given the actions of the others, a resting point
- also known as Nash Equilibrium
- Game Theory is about searching for equilibria
Types of Equilibrium
- Nash Equilibrium
- Subgame Perfect Equilbrium like in Subgame perfection
- a.k.a. SPNE
- Equilibrium