An equilibrium strategy combination is:
A)a set of dominant strategies.
B)obtained when one player's own strategy maximizes that player's own payoff.
C)a set of strategies containing the best responses of every player to the other players' best responses.
D)a fortunate turn of events.

Question

Quizplus · Accepted Answer

An equilibrium strategy combination is a set of strategies that contains the best responses of every player to the other players' best responses. In other words, each player is making the best decision possible given the decisions made by the other players. This is known as a Nash Equilibrium and it ensures that no player has an incentive to deviate from their strategy choice, as doing so would result in a lower payoff. Dominant strategies and maximizing one's own payoff may not lead to an equilibrium, while a fortunate turn of events is not a defined concept in game theory.

An Equilibrium Strategy Combination Is