When a game has multiple equilibria,a useful method to sort out which one would be the "best" prediction is to
A)find the one (if any) in which both players are better off than in any other equilibrium.
B)find the equilibrium that is symmetric,if any.
C)find the one which seems "focal",if any.
D)all of the above.

Question

Quizplus · Accepted Answer

All of the options provided are methods to determine the "best" or most likely equilibrium in a game with multiple equilibria. Finding an equilibrium where both players are better off, identifying a symmetric equilibrium, or selecting a "focal" equilibrium (one that stands out as most reasonable or salient to the players) are all valid approaches to predict the outcome of a game.

When a Game Has Multiple Equilibria,a Useful Method to Sort