Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Players can improve their outcome by changing their strategy unilaterally.
B
Players have no incentive to change their strategy unilaterally.
C
Players must coordinate their strategies.
D
Players choose randomly without regard for others' strategies.
Understanding the Answer
Let's break down why this is correct
Answer
In a Nash Equilibrium, each player in a game selects a strategy that is the best choice for them, given the strategies chosen by all the other players. This means that no player can improve their outcome by changing their strategy while the others keep theirs the same. For example, imagine two friends deciding whether to go to a movie or stay home. If both choose to go to the movie because they believe the other will also go, they are in a Nash Equilibrium, as neither would benefit from changing their choice alone. In this situation, each player's decision is optimal based on what they expect the other to do, leading to a stable outcome where everyone is satisfied with their choice.
Detailed Explanation
In a Nash Equilibrium, players have chosen the best strategy for themselves, given what others are doing. Other options are incorrect because Some might think players can always do better by changing their strategy; It might seem like players need to work together.
Key Concepts
Game Theory
Topic
Nash Equilibrium Explained
Difficulty
easy level question
Cognitive Level
understand
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