The assumption that given the strategy chosen by the other participant, a player will always choose the strategy that brings him or her the best payoff is called
A) strategic interaction.
B) economic self interest.
C) the rationality assumption.
D) the profit-maximizing assumption.

Question

Quizplus · Accepted Answer

The rationality assumption in game theory and economics posits that, given the strategies chosen by other participants, a player will always select the strategy that maximizes his or her own payoff, reflecting the idea that individuals act in their own best interest based on available information.

The Assumption That Given the Strategy Chosen by the Other