The Nash equilibrium is represented by a set of moves in a game that __________.
A)minimizes each firm's input based on the number of rivals
B)minimizes each firm's payoff given the choices of rivals
C)improves players' payoffs when they change their choices
D)removes incentive to defect

Question

Quizplus · Accepted Answer

The Nash equilibrium is a concept within game theory where each player's strategy is optimal, given the strategies of all other players in the game. This means that no player has an incentive to deviate from their strategy, as doing so would not improve their payoff, effectively removing the incentive to defect from the agreed-upon strategy.

The Nash Equilibrium Is Represented by a Set of Moves