A Nash equilibrium is a situation in which:
A) the players are better off choosing the same strategy than if they choose different strategies.
B) all players select the worst outcome.
C) no player has an incentive to change his or her strategy unilaterally.
D) one's costs are minimized.

Question

Quizplus · Accepted Answer

A Nash equilibrium occurs when no player has an incentive to change their strategy unilaterally. This means that each player is maximizing their payoff given the actions of the other players. Option A is not always true, as it is possible for players to be better off with different strategies but still not have an incentive to change. Option B is not true, as players strive to avoid the worst outcome. Option D is also not always true, as the objective of players may be to maximize their payoff rather than minimize costs.

A Nash Equilibrium Is a Situation in Which