A Nash equilibrium occurs
A) when each player acts without considering the actions of the other player.
B) when each player takes the best possible action given the action of the other player.
C) only when players use the tit-for-tat strategy.
D) only when the game is played in Nashville, TN.
E) when each player takes the action that makes the combined payoff for all players as large as possible.

Question

Quizplus · Accepted Answer

A Nash equilibrium occurs when each player takes the best possible action given the action of the other player. This means that both players are making rational decisions based on what they predict the other player will do, resulting in a stable outcome where neither player wants to deviate from their chosen strategy.

A Nash Equilibrium Occurs