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The Nash equilibrium is one of the foundational concepts in game theory.
The reality of the Nash equilibrium of a game can be tested using experimental economics methods.
Nash equilibrium has been used to analyze hostile situations like war and arms races (see prisoner's dilemma), and also how conflict may be mitigated by repeated interaction (see tit-for-tat).
It has also been used to study to what extent people with different preferences can cooperate (see battle of the sexes), and whether they will take risks to achieve a cooperative outcome (see stag hunt).
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