A Nash equilibrium occurs when:
A)a unilateral move by a participant makes him better off.
B)participants have an incentive to deviate from the equilibrium.
C)no can move from the equilibrium and improve the outcome.
D)cheating by participants ensures better payoffs.

Question

Quizplus · Accepted Answer

In a Nash equilibrium, no player can improve their payoff by unilaterally changing their strategy, meaning that all players are playing the best strategy given the strategies of others. Therefore, choice C is the correct answer. Choices A and D are incorrect because a Nash equilibrium does not necessarily guarantee that a participant will be better off if they make a unilateral move or if they cheat. Choice B is also incorrect because if participants had an incentive to deviate, then it would not be a Nash equilibrium.

A Nash Equilibrium Occurs When