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Abstract


THE GAME THEORY AND NASH’S EQUILIBRIUM STRATEGY
The game theory entered into the economy in a way that its name wasn’t given, and it provided the definite different viewpoint for the economists. It was constantly developed by the economists who tried to explain the oligopoly competition way for the next generation. The years of 1940’s and 1950’s are the years that the game theory was densely discussed. The game theory was put into more consistent systematics with the contributions of economists, mathematicians and even the psychologicists and it became an inevitable part of economics theory. One of the important people who contributed to it is John F. Nash Jr who is a mathematician who contributed substantially to the review of game theory and the partly differential equations in the differential geometry. When Nash died due to a traffic accident in 2015 after the long life, he gave a 28-pages master’s thesis, only seven articles that he wrote three of them as the co-author and four of them on his own (so that one of them consists of a single page), the extensive discussions which are the product of massless articles taking a half century and especially the concept of “Nash Equilibrium” which had a strong impact on the economy science. According to some of the researchers, the impacts of Nash’s game theory without collaboration and “Nash Equilibrium” formulas on the economics and social sicences are as important as comparing with the discovery of DNA double stranded in the sciences (Myerson, 1999). Moreover, Nash’s life will be briefly included as to provide the integration in the subject, in the study which was written in order to explain the historical development of game theory which has an important place in the economics literature and the contributions that Nash made on the game theory

Keywords
John Nash, Nash Equilibrium, Game Theory


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