An equilibrium in a game in which players pursue their own self-interest is called
A) collusion.
B) a sequential equilibrium.
C) a prisoner's dilemma.
D) a noncooperative equilibrium.
E) a cooperative equilibrium.

Question

Quizplus · Accepted Answer

Noncooperative equilibrium refers to an equilibrium in a game in which players pursue their own self-interest without communicating or coordinating with each other. This is also known as a Nash equilibrium, named after the economist John Nash who first proposed the concept. Collusion and cooperative equilibrium both involve some form of communication or coordination between players, and a sequential equilibrium refers to a situation in which players take turns making decisions based on the actions of previous players. A prisoner's dilemma is a specific type of game that often results in a noncooperative equilibrium in which both players end up worse off than if they had cooperated.

An Equilibrium in a Game in Which Players Pursue Their