Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
No player can improve their outcome by unilaterally changing their strategy.
B
Players maximize their outcomes regardless of others' strategies.
C
Players must coordinate their strategies to achieve the best outcome.
D
Nash Equilibrium always results in the highest possible payoff for all players.
Understanding the Answer
Let's break down why this is correct
Answer
In a Nash Equilibrium, each player's strategy is the best choice they can make, given the strategies chosen by the other players. This means that no player has anything to gain by changing their strategy while the others keep theirs the same. For example, imagine two friends deciding whether to go to a movie or a concert. If both choose the movie and neither would prefer to switch to the concert, knowing the other will stick with the movie, they are in a Nash Equilibrium. Essentially, it’s a situation where everyone is making the best decision they can, considering what everyone else is doing.
Detailed Explanation
In a Nash Equilibrium, each player has chosen their best strategy. Other options are incorrect because This option suggests players can win no matter what others do; This option implies players need to work together for the best results.
Key Concepts
Nash Equilibrium
Game Theory
Strategic Interdependence
Topic
Nash Equilibrium in Game Theory
Difficulty
medium level question
Cognitive Level
understand
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