A Nash equilibrium occurs if each player chooses ________.
A) strategies that are mutual best responses
B) his or her dominant strategy
C) only a pure strategy
D) only a mixed strategy

Question

Quizplus · Accepted Answer

A Nash equilibrium occurs when each player chooses a strategy that is a mutual best response, meaning that no player can improve their payoff by unilaterally changing their strategy. In other words, all players are playing their best response to the strategies chosen by the other players, resulting in a stable state of the game. Dominant strategies and pure/mixed strategies do not necessarily lead to a Nash equilibrium.

A Nash Equilibrium Occurs If Each Player Chooses ________