Schelling point

• Introduced by Thomas Schelling in book called Strategy of Conflict.
• In game theory, a focal point (or Schelling point) is a solution that people tend to choose by default in the absence of communication in order to avoid coordination failure.
• In other words, it refers to people’s expectations of what others expect them to do in the absence of sufficient information to coordinate their actions.

Example, two companies are competing with each other in a duopoly. The price of their service, fluctuates between 8 and 12. The price of the service may converge to 10 without the companies ever talking to each other.

https://en.wikipedia.org/wiki/Focal_point_(game_theory)

Nash equilibrium

If each player has chosen a strategy – an action plan based on what has happened so far in the game – and no player can increase their own expected payoff by changing their strategy while the other players keep theirs unchanged, then the current set of strategy choices constitutes a Nash equilibrium. Example -

If two players Alice and Bob choose strategies A and B, (A, B) is a Nash equilibrium if Alice has no other strategy available that does better than A at maximizing her payoff in response to Bob choosing B, and Bob has no other strategy available that does better than B at maximizing his payoff in response to Alice choosing A. In a game in which Carol and Dan are also players, (A, B, C, D) is a Nash equilibrium if A is Alice's best response to (B, C, D), B is Bob's best response to (A, C, D), and so forth.