📚 Learning Guide
Nash Equilibrium and Strategy Adjustments
easy

In a Nash equilibrium, if one player has the opportunity to change their strategy and improve their payoff, it indicates that the current situation is not truly a Nash equilibrium.

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A

True

B

False

Understanding the Answer

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Answer

A Nash equilibrium is a situation in a game where no player can improve their payoff by changing their strategy while the other players keep their strategies the same. This means that each player's choice is the best they can make given what the others are doing. If one player finds that they can change their strategy and get a better outcome, it shows that the current choices are not stable, meaning the situation is not a true Nash equilibrium. For example, if two friends are deciding whether to watch a movie or play a game, and one friend realizes they would enjoy playing the game more if the other sticks to the movie, then they would switch, showing the original choice wasn't the best for both. Thus, in a true Nash equilibrium, everyone is happy with their choice and has no reason to change.

Detailed Explanation

In a Nash equilibrium, no player can do better by changing their strategy alone. Other options are incorrect because This answer suggests that players can change strategies without affecting the equilibrium.

Key Concepts

Nash Equilibrium
Strategic Interactions
Oligopoly Behavior
Topic

Nash Equilibrium and Strategy Adjustments

Difficulty

easy level question

Cognitive Level

understand

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