Nash Equilibrium in Game Theory

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Questions and Answers

What is the Nash equilibrium in game theory?

A situation where players keep changing their strategies to gain more payoff
A situation where each player tries to maximize their own payoff without considering others' strategies
A situation where no player can increase their payoff by unilaterally changing their strategy (correct)
A situation where players collaborate to maximize their collective payoff

When is (A, B) a Nash equilibrium in a game involving Alice and Bob?

When Alice has no other strategy that does better than A in response to Bob choosing B, and Bob has no other strategy that does better than B in response to Alice choosing A (correct)
When Alice and Bob both choose the same strategy
When Alice and Bob have equal payoffs with their chosen strategies
When Alice's strategy A is always better than Bob's strategy B

What did Cournot do with the principle of Nash equilibrium in 1838?

Used it for cooperative games
Ignored its significance in game theory
Developed it as a mathematical theorem
Applied it to competing firms choosing outputs (correct)

What did Nash show about Nash equilibrium in games?

<p>There is a Nash equilibrium, possibly in mixed strategies, for every finite game (C)</p> Signup and view all the answers

When is (A, B, C, D) a Nash equilibrium in a game involving Alice, Bob, Carol, and Dan?

<p>A is Alice's best response to (B, C, D), B is Bob's best response to (A, C, D), and so forth (C)</p> Signup and view all the answers

Flashcards

Nash Equilibrium (Game Theory)

A situation where no player can improve their outcome by changing their strategy if other players' strategies remain fixed.

(A, B) Nash Equilibrium

In a 2-player game, (A, B) is a Nash equilibrium if strategy A is Alice's best response to strategy B, and strategy B is Bob's best response to strategy A.