Identify the correct statement about game theory.

Question

Quizplus · Accepted Answer

The Nash equilibrium is a solution concept in noncooperative game theory, where each player chooses their optimal strategy assuming that all other players also choose their optimal strategies. It is not a dominant strategy, as a dominant strategy is a strategy that is the best choice for a player, regardless of the choices made by the other players. The other options are incorrect as the prisoners' dilemma is a noncooperative game, collusion is an example of a cooperative game, and in a cooperative game, firms work together to achieve a common goal, such as setting prices collectively.

Identify the Correct Statement About Game Theory