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 doing the best they can, given what their opponents are doing. For example, imagine two friends deciding whether to go to the movies or stay home. If one chooses to go to the movies and the other also decides to go, neither will want to change their choice because they both enjoy going together. In this case, their choice of going to the movies is a Nash Equilibrium because neither friend can improve their situation by unilaterally changing their decision.
Detailed Explanation
In a Nash Equilibrium, both players have chosen their best strategies. Other options are incorrect because This option suggests players can always do better by changing their strategy; This option implies that 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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