Nash Equilibrium in Economics

Here is a paper written by Roger B. Myerson, a former professor at Northwestern University’s Kellogg School of Management. In this paper, Myerson analyses the importance of Nash equilibrium in the field of economics. He explains that Nash’s theory marked a turning point in economics thought, was a “new language of economic analysis”, and has helpful applications to noncooperative game theory. Based on Myerson’s findings, there is a significant difference between economic policies in the early 1900s those in the second half of the 20th century. He argues that this change is a reflection of the important influences Nash’s theory had on different economic analysis, such as pricing theories. By reading this paper, it becomes clear that the decision making theories we learn in class have broad applications not only in our everyday lives but also in the strategies of economists.
Link to paper:

http://home.uchicago.edu/~rmyerson/research/jelnash.pdf