Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
They are satisfied with their outcomes.
B
They cannot change their strategies due to external factors.
C
They have maximized their potential profits given others' strategies.
D
They believe other players will eventually change theirs.
Understanding the Answer
Let's break down why this is correct
Answer
In a Nash Equilibrium, players do not change their strategy because they have found a situation where no one can benefit by changing their own choice, assuming the others keep their strategies the same. This means that each player's decision is the best response to the decisions of the others. For example, think of two friends deciding whether to go to the movies or stay home. If both choose to stay home and are happy with that choice, neither has an incentive to change their decision because doing so would not make them happier, given the other person's choice. Therefore, at this point, they are in a Nash Equilibrium, where all players are content with their strategies.
Detailed Explanation
Players have found the best way to play, given what others are doing. Other options are incorrect because Some might think players are happy with their results; This suggests outside forces stop players from changing.
Key Concepts
Nash Equilibrium
Game Theory
Strategic Decision-Making
Topic
Nash Equilibrium in Game Theory
Difficulty
easy level question
Cognitive Level
understand
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