A Nash equilibrium:
A) means that no players have an incentive to change their strategy.
B) means that some players could be made better off by changing their strategy.
C) is suboptimal compared to Raj's equilibrium.
D) None of the answers is correct.

Question

Quizplus · Accepted Answer

A Nash equilibrium is a situation in which no player has an incentive to change their strategy, meaning that any deviation from their current strategy would result in a worse outcome for them. Therefore, option A is the correct choice. Option B is the opposite of a Nash equilibrium, where some players can improve their outcome by changing their strategy. Option C is not a valid comparison as there is no such thing as "Raj's equilibrium." Option D is also incorrect as there is at least one correct answer (Option A).

A Nash Equilibrium