The Nash equilibrium leads to the overuse of resources when:
A)competition is intense.
B)profit is not the main goal.
C)resources are privately owned.
D)resources are shared.

Question

Quizplus · Accepted Answer

In a Nash equilibrium involving shared resources, individuals act in their own self-interest and do not consider the negative effects of their actions on others, leading to overuse or depletion of those resources, a phenomenon also known as the tragedy of the commons.

The Nash Equilibrium Leads to the Overuse of Resources When