Game Theory. John Nash. I would like to publish quite unusual post. It will be about a man whose books influenced me a lot. In the late 40s of the last century, the American mathematician John Nash defends his thesis on game theory. The essence of the theory is that in the situation of “conflict” of interests there is a special state (Nash equilibrium) at which all (and not the only one) participants in the dispute can win. Nash constructed mathematical models in order to demonstrate the theory and to suggest ways to find equilibrium. There is an interesting book and a film about John Nash. The concept of win-win is a special case of Nash equilibrium. The Game theory is universal. It works well for business, and for personal life. John Nash himself received a Nobel Prize in economics for his fantastic discovery. Simplifying the theory – in any dispute there is always a state in which all the parties could get the most out of the possible. One just needs to find this state. To find the Nash equilibrium parties should understand needs of each other (we say “to use empathy”). They need to think critically and to disable emotions. Often, instead of that, they reference to each other’s personal qualities. Such disputes end with a “total war” state in which no winners is possible. If you are in negotiations, the first thing to do is to make sure that your opponent understands that he/she can win without forcing you to lose. This is quite easy to ensure. Just state a question – “Can we find a solution in which we both get the maximum”? Often this is enough to turn the negotiations into a constructive way. I often recall the Game theory when I consult my clients or teach students. One of the courses I lead is devoted to critical thinking. John Nash mathematically proved that Nash equilibrium is not only possible, it is realistically achievable. The story of John Nash ended unexpectedly. Three years ago, on May 23, 2015, he died in a car accident with his life companion Alicia Nash, who for many years supported John and inspired him on his way to success. Subscribe to receive web-site updates: [email-subscribers namefield=”YES” desc=”” group=”Public”] Post navigation Never Give Up!