Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
In Nash Equilibrium, players can improve their outcomes by changing their strategies unilaterally.
B
Nash Equilibrium can occur in multiple scenarios, including the Prisoner's Dilemma.
C
At Nash Equilibrium, no player has an incentive to change their strategy given the strategies of others.
D
Nash Equilibrium guarantees the best possible outcome for all players involved.
E
Understanding Nash Equilibrium is essential for analyzing competitive behaviors in economics.
Understanding the Answer
Let's break down why this is correct
Answer
Nash Equilibrium is a concept in game theory where players make decisions that are optimal, given the choices of others. This means that no player can benefit by changing their strategy if the other players keep theirs the same. For example, in a game where two friends decide whether to watch a movie or play a game, if both prefer watching a movie and choose that, neither will change their choice because they are both happy with the outcome. In this situation, their decision is stable, and that's what makes it a Nash Equilibrium. It highlights how individuals' choices depend on the choices of others in a competitive environment.
Detailed Explanation
In Nash Equilibrium, players do not benefit from changing their strategies alone. Other options are incorrect because This suggests players can always do better by changing their strategy; While Nash Equilibrium can happen in many situations, the statement implies it always applies.
Key Concepts
Nash Equilibrium
Game Theory
Strategic Decision-Making
Topic
Nash Equilibrium Explained
Difficulty
easy level question
Cognitive Level
understand
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