Berge Equilibrium
An equilibrium where each player maximizes the payoff of all others, assuming they do not deviate from their Berge strategies.
Definition
A strategy profile is a Berge equilibrium if for each player , for all (Nash condition), and additionally for all (Berge condition).
The second condition says player 's payoff is maximized at given plays their part — the opponent's choices do not harm at the equilibrium.
Intuition
In a Berge equilibrium, each player takes the action that is best for the others, creating a kind of altruistic balance.
It contrasts with Nash (self-interested) and provides a model of "I'll do what's good for you, trusting you'll do what's good for me."
Worked example
In a two-player coordination game with Pareto-ranked equilibria, the payoff-dominant equilibrium is often also a Berge equilibrium.
Team sports: each player positions themselves to benefit teammates, relying on teammates to do the same.
The math
Every Nash equilibrium that is also Pareto efficient and satisfies for all is a Berge equilibrium.
Berge (1957) introduced the concept; Colman (2006) revived it as a model of team reasoning.
Where it is used
Team decision-making, cooperative behavior in social dilemmas, and evolutionary models of altruism.
Alternative to Nash in settings with group-oriented reasoning.
More in Game theory
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