Equilibrium in Competition
In tourism, the Nash Equilibrium (game theory) describes a situation where all actors, such as destinations or providers, have chosen their strategies so that no one can achieve better results through unilateral changes. This creates an equilibrium in areas such as pricing, marketing, or services, providing stability in a competitive environment.
Thus, there are several “good” equilibria in competition.
Nash Equilibrium in Tourism:
A multiple Nash equilibrium means that there are several stable strategy combinations in which no player can improve their position through unilateral deviation. In such cases, the game is not clearly predictable because different equilibria are possible. Players may need to use additional criteria or communication to agree on a specific equilibrium.
Multiple destinations could choose different but stable pricing strategies, each of which works on its own.
