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| The internal tension and resolution of Nash equilibrium |
| QIAN Jin |
| Institute of Economics, Chinese Academy of Social Sciences, Beijing 100836 |
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Abstract Nash equilibrium is a non-cooperative game. The economic definition of Nash equilibrium refers to a combination of strategies of participants. In this combination of strategies, any participant who changes the strategy alone will not benefit. In other words, if in a combination of strategies, when everyone else does not change the strategy, no one will change their strategy, then the combination of strategies is a Nash equilibrium. However, in a Nash equilibrium, the public interests or common interests among all parties, including collective interests, regional interests, national interests, and the common interests of all human beings or the common affairs of the world, need to be effectively managed according to social rationality. In fact, in face of individual interests bounded by common interests, participants should not pursue, appreciate or passively accept Nash equilibrium, but should be fully aware that a Nash equilibrium not only proves the existence of non-cooperative games, but also reveals that there are common interests that need to be managed among participants in non-cooperative games. The participants in non-cooperative games have common interests and need effective public administration to safeguard the interests and ensure their realization. This is the deep enlightenment that Nash equilibrium theory brings to modern economics research.
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Received: 20 January 2019
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2019, Vol. 36 
