Nash’s equilibrium remains a cardinal analytical tool in modern economic science, providing a mathematically grounded framework to decode competitive interactions, strategic behavior, uncertainty and interdependent decision-making. This review presents a rigorous and technically refined evaluation of Nash’s equilibrium and its theoretical expansions, methodological foundations, limitations and contemporary empirical significance. Particular emphasis is placed on strategic market structures, oligopolistic competition, digital platform economies, algorithmic pricing, global trade dynamics and policy formulations in emerging economies. The article synthesizes a diverse corpus of theoretical models and empirical findings to appraise how Nash’s equilibrium has evolved from a theoretical construct to a ubiquitous analytical paradigm in decision sciences. Furthermore, critiques regarding equilibrium multiplicity, non-cooperative rigidity, computational complexity and behavioral deviations are examined in depth. The review concludes by outlining prospective research directions centred on algorithmic game theory, behavioral refinements, AI-governed markets and systemic interactions within complex adaptive economies.
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