Nash equilibrium, in the process of a game, no matter how the opponent chooses a strategy, one side will choose a certain strategy, which is called dominant strategy. If the combination of strategies in two games constitutes their respective dominant strategies, then this combination is defined as Nash equilibrium.

A combination of strategies is called Nash equilibrium. When each participant's equilibrium strategy is to achieve the maximum of his expected income, at the same time, all other participants follow this strategy.

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Nash equilibrium is named after American mathematician John Forbes Nash Jr. A version of this concept was used by Antoine Augustine Cournot in his oligopoly theory as early as 1838. In Cournaud's theory, enterprises need to choose the appropriate output to obtain the maximum profit, but the ideal output of an enterprise depends on the output of other enterprises.

When the ideal output of each manufacturer needs to be adjusted according to the output of other manufacturers in order to maximize profits, a pure strategy Nash equilibrium-Cournot equilibrium is formed. In the process of analyzing the equilibrium stability, Cournaud also put forward the concept of optimal reaction kinetics (or optimal reaction kinetics). However, Nash's definition of balance is broader than bibik Kuhl's and Paletto's definition of efficiency balance, because Nash's definition does not judge "what kind of balance is the most ideal".

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