A Nash equilibrium in game theory is defined as a situation in which:
A) no player has an incentive to change his or her strategy even when other players change.
B) no player has an incentive to change his or her strategy unilaterally.
C) any player has an incentive to change his or her strategy until he or she reaches the optimum.
D) any player has an incentive to change his or her strategy even when other players remain unchanged.

Question

Quizplus · Accepted Answer

In a Nash equilibrium, no player has an incentive to change his or her strategy unilaterally, meaning that changing strategy will not improve their outcome without the cooperation of other players. Option A is similar, but it omits the "unilaterally" qualifier, which makes option B more precise. Option C is incorrect because a Nash equilibrium is specifically a situation in which no player can unilaterally improve their outcome, so there is no incentive to change strategy further. Option D is incorrect because a Nash equilibrium is, by definition, a situation where no player has an incentive to change their strategy even if other players remain unchanged.

A Nash Equilibrium in Game Theory Is Defined as a Situation