Nash Equilibrium: Nash equilibrium is a state in which each player's strategy is optimal given the strategies chosen by others, resulting in no player having an incentive to change their strategy.
Prisoner's Dilemma: The prisoner's dilemma is a classic game theory scenario where two individuals can either cooperate or betray each other. It illustrates how self-interested behavior can lead to suboptimal outcomes for both parties.
Payoff Matrix: A payoff matrix shows the potential outcomes (payoffs) of different strategies for each participant in a game, helping identify the best course of action for each player.