The Nash equilibrium: nobody does better alone
An equilibrium point is an n-tuple such that each player’s mixed strategy maximizes his payoff if the strategies of the others are held fixed.
— John Nash, Proceedings of the National Academy of Sciences (1950) In 1944 John von Neumann and the economist Oskar Morgenstern published Theory of Games and Economic Behavior, a huge book that turned strategic decisions into mathematics: card games, wars, markets. Von Neumann’s great result applied to two-player zero-sum games, in which what one wins the other loses, like chess or poker. But most of life is not like that: in a trade deal, a negotiation or traffic, both sides can win together, or lose together.