Econ 11.2

A situation in which each firm chooses the best strategy given the strategies chosen by other firms is called a

Nash equillibrium

Which of the following is true of a Nash equilibrium?

No player can improve his payoff by changing his strategy once in Nash equilibrium.

A game in which each player adopts its dominant strategy

could result in a Nash equilibrium.

A Nash equilibrium occurs if ________.

each player chooses strategies that are mutual best responses

A Nash equilibrium is

reached when each player chooses the best strategy for himself, given the other strategies chosen by the other players in the group.