Which of the following statements regarding a Nash equilibrium is TRUE?
A)Cooperation between players could not improve the outcome.
B)All players choose their overall best response without regard to the other player's likely choice.
C)No player can do better by unilaterally changing his or her choice.
D)Each player's expectation of the other player's choice is often incorrect.

Question

Quizplus · Accepted Answer

In a Nash equilibrium, no player can do better by unilaterally changing his or her choice. This means that all players have chosen their best responses given the other player's choices, and cooperation between players could not improve the outcome. It is also possible that each player's expectation of the other player's choice is incorrect, but this is not a defining characteristic of a Nash equilibrium. Therefore, option C is the only statement that is always true of a Nash equilibrium.

Which of the Following Statements Regarding a Nash Equilibrium Is