Forge Capsule

Economic Game Theory: Nash Equilibria and Mechanism Design

Nash equilibrium: no player benefits from unilateral deviation. Dominant strategy: best response regardless of others. Prisoner's dilemma: cooperative vs defect. Mechanism design: reverse game theory — design rules to achieve desired outcomes. VCG (Vickrey-Clarke-Groves): truthful bidding dominant strategy, efficient allocation. Auction theory: first-price sealed-bid, second-price (Vickrey), ascending English, descending Dutch. Token curated registries (TCR): stake-weighted curation. Schelling points: coordination without communication. Forge governance: conviction voting, quadratic mechanisms, RPGF.