Which of the following statements is incorrect?
A)A Nash equilibrium is a situation in which each player chooses their best strategy given the strategies chosen by the other players in the game.
B)A Cournot equilibrium is an example of a Nash equilibrium.
C)A Bertrand equilibrium is an example of a Nash equilibrium.
D)A Nash equilibrium maximizes the aggregate payoffs of the players of the game.

Question

Quizplus · Accepted Answer

A Nash equilibrium may not always maximize the aggregate payoffs of the players of the game. It simply means that no player can unilaterally improve their payoff by changing their strategy, given the strategies of the other players. A Nash equilibrium does not necessarily maximize the aggregate payoffs of the players. It only ensures that no player can unilaterally improve their payoff by changing their strategy. In certain games, there may be multiple Nash equilibria that result in lower aggregate payoffs compared to other outcomes.

Which of the Following Statements Is Incorrect