Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A situation where both players can benefit by changing their strategies
B
A situation where neither player can improve their payoff by unilaterally changing their strategy
C
A situation where both players agree on a strategy before the game starts
D
A situation where players communicate their strategies to each other
Understanding the Answer
Let's break down why this is correct
Answer
A Nash Equilibrium is a situation in a game where each player has chosen a strategy, and no player can gain anything by changing their strategy while the other players keep theirs the same. This means that everyone is making the best decision they can, given what their opponents are doing. For example, imagine two friends deciding whether to go to the movies or stay home. If one chooses to go to the movies and the other also chooses to go to the movies, neither will change their decision because they both prefer to be together at the movies rather than doing something alone. In this case, both players are at a Nash Equilibrium because neither has an incentive to switch their choice.
Detailed Explanation
A Nash Equilibrium happens when both players have chosen their best strategies. Other options are incorrect because This answer suggests that players can always do better by changing; This option implies that players must agree before playing.
Key Concepts
Nash Equilibrium
Topic
Nash Equilibrium Explained
Difficulty
easy level question
Cognitive Level
understand
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