In a Nash equilibrium,which of the following constrains an individual when he optimizes?

Question

Quizplus · Accepted Answer

In a Nash equilibrium, an individual's strategy choice is optimal given the actions of all other individuals. Therefore, the actions of other individuals constrain an individual when he optimizes. The market prices and an individual's tastes may influence an individual's strategy choice, but they do not necessarily constrain it. Option D is incorrect because Nash equilibrium by definition implies that an individual's strategy choice is constrained by the actions of others.

In a Nash Equilibrium,which of the Following Constrains an Individual