Identify the statement that best defines Nash equilibrium.
A)It is a set of strategies in which a firm does the best it can,given the action of its rival.
B)It is a sequence of actions,where the actions are taken at each node of the game.
C)It is a set of strategies that gives a player the first-mover advantage.
D)It is a sequence of actions that are taken to influence the actions of rivals.

Question

Quizplus · Accepted Answer

Nash equilibrium is a situation in which each player chooses the best strategy given the strategies chosen by the other players. In other words, no player can improve their payoff by unilaterally changing their strategy, assuming the other players maintain their strategies. Therefore, it is a set of strategies in which a firm does the best it can given the action of its rival.

Identify the Statement That Best Defines Nash Equilibrium