In a Nash Equilibrium, each player's strategy is optimal given the strategies of others, meaning no player can gain a higher payoff by unilaterally changing their strategy. This situation emphasizes the importance of __________ in competitive environments.

In a Nash Equilibrium, each player chooses their best strategy while considering what the other players are doing. This means that if one player decides to change their strategy on their own, they will not end up with a better outcome. This situation highlights the importance of cooperation and understanding in competitive environments because players must think about how their choices affect others. For example, imagine two companies deciding on their prices for the same product. If both companies set their prices based on what they believe the other will do, they can reach a point where neither wants to change their price, as doing so would lead to lower profits.