The concept of Nash Equilibrium

Question

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The concept of Nash Equilibrium has wide applicability in various fields like economics, political science, psychology, and biology. It is a fundamental concept in game theory and has been extensively used to analyze various strategic interactions.

Answer: C
 The Nash Equilibrium is a theoretical concept that assumes that each player in a game will follow their dominant strategy based on the assumption that others will also do the same. While the assumption may not always hold true, it has been observed that firms generally follow their dominant strategies in economic behavior, making the concept of Nash Equilibrium quite applicable in economics.

Answer: D
 There is no evidence to suggest that the concept of Nash Equilibrium has been disproven by modern economists. On the contrary, it remains a widely used and accepted concept in game theory, and its applicability has been demonstrated in various real-world situations.

The Concept of Nash Equilibrium