A Nash equilibrium is defined as

Question

Quizplus · Accepted Answer

A Nash equilibrium is when each player takes the best possible action given the action of the other player, meaning that no player has an incentive to change their strategy. It is not necessarily about earning zero economic profit or forming a cartel with strong penalties. It also does not rely on other game players to realize the benefit of cooperation, as each player is acting in their own self-interest. Choosing the action that is best for all players (option E) is not always achievable in a game as each player has their own interests and goals.

A Nash Equilibrium Is Defined as