Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
At Nash Equilibrium, players have no incentive to unilaterally change their strategy.
B
Nash Equilibrium guarantees that all players receive the maximum possible payoff.
C
In Nash Equilibrium, players choose their strategies based solely on their own preferences without regard to others.
D
Nash Equilibrium can occur in both cooperative and non-cooperative games.
E
Players may still benefit from changing their strategy even when at Nash Equilibrium.
Understanding the Answer
Let's break down why this is correct
Answer
Nash Equilibrium is a concept in game theory that describes a situation in a strategic interaction where no player can benefit from changing their strategy if the other players keep their strategies the same. In other words, each player's strategy is optimal given the strategies chosen by others. For example, imagine two friends deciding whether to go to a movie or stay home, where each prefers to go together rather than alone. If both decide to go to the movie, neither has an incentive to change their choice because they are maximizing their enjoyment together. This balance is what makes it a Nash Equilibrium, as any deviation would lead to a less favorable outcome for at least one player.
Detailed Explanation
Nash Equilibrium means players have chosen their best strategies, given what others are doing, but it doesn't guarantee maximum payoffs. Other options are incorrect because This suggests players won't change their strategy at all; This implies everyone gets the best outcome.
Key Concepts
Nash Equilibrium
Strategic Interaction
Game Theory
Topic
Nash Equilibrium in Game Theory
Difficulty
easy level question
Cognitive Level
understand
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