In a two-players 1 and 2 non-cooperative game, a strategy constitutes a Nash equilibrium when
A)holding fixed the strategy of player 2, player 1 is better off choosing other strategies other than his equilibrium strategy
B)holding fixed the strategy of player 1, player 2 is better off choosing other strategies other than his equilibrium strategy
C)holding fixed the strategy of player 2, player 1 is better off with his equilibrium strategy than with other strategies
D)holding fixed the strategy of player 1, player 2 is better off with his equilibrium strategy than with other strategies
E)both c and d

Question

Quizplus · Accepted Answer

A Nash equilibrium is achieved when both players choose strategies that are the best response to each other's strategies, and neither player has an incentive to unilaterally switch to a different strategy. Thus, both C and D are necessary conditions for a Nash equilibrium to exist. Therefore, the correct answer is E, both C and D.

In a Two-Players 1 and 2 Non-Cooperative Game, a Strategy