An equilibrium is an outcome in which

Question

Quizplus · Accepted Answer

An equilibrium is a situation in which all individuals in a system are simultaneously optimizing, meaning they are making the best choice given the constraints and information available to them. This can include situations such as market equilibria, where the supply and demand for a good or service match up, or game theory equilibria, where players in a game choose their best strategies given the actions of others. Constraints can still be binding in an equilibrium, as long as individuals are still choosing the best option available to them within those constraints. Social gain or the satisfaction of all agents is not necessary for an equilibrium, as some individuals or groups may benefit more than others.

An Equilibrium Is an Outcome in Which