A Nash equilibrium occurs when
A)there is a clear strategy for each player independent of the other player's actions.
B)each player takes the best possible action given the other player's action.
C)each player complies with the collusive agreement.
D)you cooperate until the other player cheats,and then you cheat forever.
E)jail time is minimized.

Question

Quizplus · Accepted Answer

In a Nash equilibrium, each player takes the best possible action given the other player's action. This means that no player has an incentive to deviate from their chosen strategy, as any deviation would result in a worse outcome for that player. Therefore, a Nash equilibrium represents a stable solution to a game, where neither player can unilaterally improve their outcome.

A Nash Equilibrium Occurs When