Use the following setup for the question.
Assume a simultaneous-move game.

-What is the Nash equilibrium of the game?
A)Low,Low
B)Low,High
C)High,Low
D)High,High

Question

​Use the following setup for the question.
Assume a simultaneous-move game.
 
-​What is the Nash equilibrium of the game?
A)​Low,Low 
B)Low,High 
C)High,Low 
D)​High,High

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the other players' strategies. "Low, Low" means both players choose a strategy that, assuming the other player's strategy is fixed, they cannot benefit from unilaterally changing their own strategy. This outcome is stable because neither player has an incentive to deviate from the "Low" strategy, assuming the other player's choice remains unchanged.

​Use the Following Setup for the Question

Use the Following Setup for the Question