A solution or best response to a situation that depends on what is MOST "obvious" and is used in situations in which there is more than one Nash equilibrium is called a
A) point of decision.
B) focal point.
C) payoff equilibrium.
D) bliss point.

Question

Quizplus · Accepted Answer

A focal point refers to a solution that is considered most obvious or natural when there is more than one Nash equilibrium in a game. It is a concept introduced by Thomas Schelling to describe a solution that people tend to choose by default in the absence of communication.

A Solution or Best Response to a Situation That Depends