📚 Learning Guide
Nash Equilibrium Explained
easy

In a Nash Equilibrium, how do players in a game choose their strategies given the strategies of other players?

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Learning Path
Learning Path

Question & Answer
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Choose the Best Answer

A

They choose randomly regardless of others' choices

B

They choose strategies that maximize their own payoff, given others' strategies

C

They always cooperate with each other

D

They ignore the strategies of the other players

Understanding the Answer

Let's break down why this is correct

Answer

In a Nash Equilibrium, players in a game make their choices based on what they believe other players will do. Each player selects their best strategy, knowing that the other players are also choosing their best strategies. This means that no player has an incentive to change their strategy because doing so would not lead to a better outcome for them. For example, imagine two friends deciding whether to go to a movie or a concert. If both choose the movie because they think the other prefers it too, they are in a Nash Equilibrium, as neither would want to change their choice alone since they would miss out on the plan they made together.

Detailed Explanation

In a Nash Equilibrium, each player picks the best strategy for themselves, knowing what others are doing. Other options are incorrect because Some might think players just pick randomly; It's a common mistake to believe players always work together.

Key Concepts

Players
Topic

Nash Equilibrium Explained

Difficulty

easy level question

Cognitive Level

understand

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