Which of the following is a correct statement about a Nash equilibrium in a two-player game?
A) The joint payoffs of the two players are highest compared to other strategy pairs.
B) A Nash equilibrium is always unique in real-world problems.
C) Given another player's strategy, no player can improve her welfare by unilaterally changing her strategy.
D) All of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

A Nash equilibrium is a strategy pair in which no player can improve their welfare by unilaterally changing their strategy, given the other player's strategy. The joint payoffs may not necessarily be the highest compared to other strategy pairs. Additionally, Nash equilibria may not always be unique in real-world problems. Therefore, only option C is a correct statement about Nash equilibrium.

Which of the Following Is a Correct Statement About a Nash