# Equilibrium Theory **Domain:** Economics, Game Theory, Mathematics **Doc Type:** Concept Node **Classification:** Infrastructure Concept **Maturity:** Foundational **Related:** [[Equilibrium Structures]], [[Nash Equilibrium]], [[Economics]] --- ## Definition A **mathematical framework in which systems are analyzed by identifying equilibrium states—configurations where no actor has incentive to unilaterally deviate from current behavior—and analyzing how perturbations move systems toward or away from equilibrium**. Theory assumes equilibria are meaningful and stable. --- ## General Context Equilibrium theory in economics (general equilibrium, partial equilibrium) assumes that markets move toward equilibrium where supply equals demand. Game theory equilibrium (Nash equilibrium) assumes rational players settle at strategies where no player wants to change unilaterally. --- ## Nash Equilibrium Context Planetary governance as a strategic game has equilibria toward which systems converge. See [[articles/nash-planetary-governance|The Algorithmic State and Nash Equilibrium of Planetary Governance]]. --- ## Key Insight Equilibrium theory's power lies in enabling mathematical analysis, but it relies on strong assumptions (rationality, complete information, no transaction costs, stable preferences) that rarely hold. Systems far from equilibrium may not converge back. --- ## See Also [[Game Theory]], [[Control Theory]]