A noncooperative equilibrium is one in which:
A) the participants act independently, pursuing only their individual interests.
B) always results in a negative-negative outcome.
C) a dominant strategy exists for both players.
D) each player ignores the actions of the other players.

Question

Quizplus · Accepted Answer

A noncooperative equilibrium occurs when participants pursue their individual interests and do not consider the actions of others. This can often result in a suboptimal outcome because each player is only focused on maximizing their own gains, rather than considering the potential benefits of cooperation.

A Noncooperative Equilibrium Is One in Which