Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A situation where both players can improve their payoff by changing their strategy
B
A situation where neither player can benefit by unilaterally changing their strategy
C
A state where players communicate and coordinate their strategies
D
A choice made by one player that guarantees a win regardless of the opponent's choice
Understanding the Answer
Let's break down why this is correct
Answer
A Nash Equilibrium is a situation in a game where each player has chosen a strategy, and no player can benefit by changing their strategy while the other players keep theirs the same. This means that everyone is making the best decision they can, given what the others are doing. 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 will also choose it, this might be a Nash Equilibrium, as neither would want to switch to the concert knowing the other would still choose the movie. In this way, a Nash Equilibrium shows how players can reach a stable outcome where everyone's choices are interdependent.
Detailed Explanation
A Nash Equilibrium happens when both players have chosen their best strategies. Other options are incorrect because This option suggests players can always improve their choices; This option implies players talk and plan together.
Key Concepts
Nash Equilibrium
Topic
Nash Equilibrium in Game Theory
Difficulty
easy level question
Cognitive Level
understand
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