General Nash Equilibrium: Unifying All Equilibrium Concepts

Abstract

There are two independent lines of equilibrium concepts. To unify these two lines, we generalize the concept of Nash equilibrium to the concept of general Nash equilibrium such that it becomes applicable to all games. We also generalize the concept of general equilibrium in general equilibrium theory to a more general concept of general equilibrium such that it becomes applicable to all games. To illustrate the usefulness of these generalized concepts, we apply them to industrial organizations and general equilibrium theory.