A Nash equilibrium:
A) Always results in the best possible payoff for all players.
B) Occurs when each player adopts a strategy that is the best response to a strategy adopted by a rival.
C) Occurs when a player cannot improve his or her payoff by switching strategies.
D) Both b and c are correct.
E) None of the above.

Question

Quizplus · Accepted Answer

A Nash equilibrium is defined by both players adopting strategies that are best responses to each other (B), and neither player can improve their payoff by unilaterally changing their strategy (C). It does not necessarily result in the best possible payoff for all players (A).

A Nash Equilibrium