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What is a Nash equilibrium?



A. A state where each player is doing the best it can, given the strategies of all other players
B. A state where the sum of all payoffs is maximized
C. A state where the players always have achieved their best possible result
D. A state at which MR = MC for a firm
E. A state where each player always must play a dominant strategy

This question is part of Chapter 1
Asked by Orsay, Last updated: Sep 15, 2020

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2 Answers

b.Lisa

b.Lisa

b.Lisa
B.Lisa

Answered Dec 12, 2017

The Nash equilibrium is a concept of game theory. This is a theory in which the optimal outcome of a game is one where no player has an incentive to deviate from his or her original chosen strategy after considering an oponent's choice. This concept is named after the mathematician that invented it, John Nash.In this game state each player must be doing the best that they can given the strategies of all the other players.

Mathematically if a game is truly played using the Nash equilibrium it will come out as perfectly as possible according to the rules that are applied to every game.

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Orsay

Orsay

Orsay
Orsay

Answered Sep 04, 2017

A state where each player is doing the best it can, given the strategies of all other players
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