A Nash equilibrium is
A)the same as a dominant strategy.
B)is the outcome where a player has selected her best strategy, given the choices of the other players.
C)occurs in a game when a cartel solution is reached.
D)occurs when one player can change her strategy and be better off.

Question

Quizplus · Accepted Answer

A Nash equilibrium is not necessarily the same as a dominant strategy. A dominant strategy is the best choice for a player regardless of the choices made by other players, while a Nash equilibrium is the outcome where no player can improve their outcome by unilaterally changing their strategy, given the strategies of the other players. A Nash equilibrium does not necessarily involve a cartel solution or a situation where a player can change their strategy and be better off.

A Nash Equilibrium Is