Questions tagged [solution-concept]

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Difference between Nash equilibrium and Pareto Efficiency

Nash Equilibrium is defined as a solution concept referring to a best outcome which players won't want to unilaterally deviate given the response of other players doesn't change. To me it seems like ...
6
votes
1answer
216 views

Equilibrium with Externalities: Solving without FOC

I have a general equilibrium problem, where households given objective function $U(c,n)$ solve for working hours and consumption $n, c$, and firms use labor to produce a consumption good - their ...
5
votes
1answer
314 views

Is a Nash equilibrium anything more than what it is?

(Sorry for the fuzzy title, could not think of something more informative. Feel free to suggest improvements) This question is somewhat of a generalization of "Osborne, Nash equilibria and the ...