Which of the following is true of a Nash equilibrium?
A) A game can have only one Nash equilibrium.
B) No player can improve his payoff by changing his strategy in a Nash equilibrium.
C) A Nash equilibrium cannot occur if each player is aware of the strategies of other players.
D) A Nash equilibrium occurs if each player earns a zero payoff irrespective of the strategy he chooses.

Question

Quizplus · Accepted Answer

A Nash equilibrium is a situation in which no player can improve his or her payoff by unilaterally changing their strategy while other players keep their strategies constant. Therefore, option B is correct. Option A is incorrect because a game can have multiple Nash equilibria. Option C is incorrect because awareness of other players' strategies is a necessary condition for a Nash equilibrium to be reached. Option D is incorrect because each player would have an incentive to deviate from his or her strategy in a zero-payoff outcome.

Which of the Following Is True of a Nash Equilibrium