📚 Learning Guide
Nash Equilibrium Explained
easy

Nash Equilibrium : Players choosing optimal strategies :: Prisoner's Dilemma : ?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
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Choose the Best Answer

A

Players cooperating for mutual benefit

B

Players choosing the worst possible outcome

C

Players acting independently without regard to others

D

Players always betraying each other

Understanding the Answer

Let's break down why this is correct

Answer

The Nash Equilibrium is a situation in a game where all players have chosen their best strategies, and no one can benefit by changing their choice if the others keep their strategies the same. In the context of the Prisoner's Dilemma, it refers to the outcome where both players choose to betray each other, even though they would both be better off if they cooperated. This happens because each player thinks that betraying the other will lead to a better personal result, but in the end, they both end up worse off. For example, if two friends are caught stealing and each can either confess or stay silent, the Nash Equilibrium occurs when both confess, as they fear the other will betray them. So, in the Prisoner's Dilemma, the players' optimal strategies lead them to a less desirable outcome, illustrating how individual rational choices can lead to a collective disadvantage.

Detailed Explanation

In the Prisoner's Dilemma, players act on their own. Other options are incorrect because Some might think players work together for a better outcome; It's a common mistake to think players choose the worst outcome.

Key Concepts

Nash Equilibrium
Prisoner's Dilemma
Game Theory
Topic

Nash Equilibrium Explained

Difficulty

easy level question

Cognitive Level

understand

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