Reaching a Nash equilibrium means that:
A)the players have reached a stable outcome where neither of you would wish to change your strategy once you find out what the other player is doing.
B)the outcome will be positive-positive.
C)a cooperative equilibrium has been reached.
D)the players have failed to reach a stable outcome because one player will always wish to change his strategy once he finds out what the other player is doing.

Question

Quizplus · Accepted Answer

Reaching a Nash equilibrium means that both players have found a stable strategy where neither would benefit from changing their strategy if they knew what the other player was doing. This is a key concept in game theory and is named after John Nash, who showed mathematically that such an equilibrium exists for any finite game with a finite set of players. Option B is incorrect as there is no guarantee of a positive-positive outcome in a Nash equilibrium. Option C is incorrect as a Nash equilibrium does not necessarily involve cooperation. Option D is incorrect as a Nash equilibrium, by definition, is a stable outcome where no player wishes to change their strategy.

Reaching a Nash Equilibrium Means That