Which of the following can always be used to determine the outcome when there are multiple Nash equilibria?
A)the Pareto Criterion
B)cheap talk
C)Both A and B
D)None of the above.

Question

Quizplus · Accepted Answer

None of the above options can always be used to determine the outcome when there are multiple Nash equilibria. The Pareto Criterion only considers the highest total payoffs and does not necessarily account for fairness or individual payoffs. Cheap talk is a communication strategy, but it does not guarantee a unique outcome in a game. Therefore, other methods such as additional assumptions, empirical analysis, or intuition may be necessary to determine the outcome in such a situation.

Which of the Following Can Always Be Used to Determine