-Refer to noncooperative, one-time, static game depicted in Figure 1.3. The Nash equilibrium strategy profile for this game is:
I. {A1, B1}.
II. {A1, B2}.
III. {A2, B1}.
IV. {A2, B2}.
Which of the following is correct?
A) I only.
B) II only.
C) III only.
D) I and III only.
E) II and IV only.

Question

-Refer to noncooperative, one-time, static game depicted in Figure 1.3. The Nash equilibrium strategy profile for this game is:
I. {A1, B1}.
II. {A1, B2}.
III. {A2, B1}.
IV. {A2, B2}.
Which of the following is correct?
A) I only. 
B) II only. 
C) III only. 
D) I and III only. 
E) II and IV only.

Quizplus · Accepted Answer

A Nash equilibrium occurs when no player can benefit by unilaterally changing their strategy given the other player's strategy. Both {A1, B1} and {A2, B1} meet this criterion, as neither player can improve their payoff by changing their strategy while the other's strategy remains unchanged.

-Refer to Noncooperative, One-Time, Static Game Depicted in Figure 1