In game theory, a Nash equilibrium is
a. an outcome in which each player is doing his best given the strategies chosen by the other players.
b. an outcome in which no player wishes to change her chosen strategy given the strategies chosen by the other players.
c. the outcome that occurs when all players have a dominant strategy.
d. All of the above are correct.
d
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A true cost-of-living adjustment (COLA) in response to a change in prices would compensate consumers so that they would be able to
A) purchase the same bundle they purchased before prices changed. B) achieve the same level of utility they did before prices changed. C) face the same choices they did before prices changed. D) achieve an increase in utility that is equal to the rate of inflation.
Subsidizing coal mining and orange growing have both been found to be economically inefficient in that the costs outweigh the benefits. However, a subsidy on coal mining would help the coal producers in West Virginia and a subsidy on orange growing would help the orange farmers in Florida. So the senator from West Virginia approaches the senator from Florida and says that he will vote for the
orange subsidy if the Florida senator votes for the coal-mining subsidy. The Florida senator agrees. Which term best describes what just happened? a. the shortsightedness effect b. logrolling c. the use of user charges d. the political voter theory
During the height of the euro-are crisis, deposits at the ECB's deposit facility surged above €800 billion because:
A. euro area commercial banks preferred the safety of deposits at the central bank. B. euro area commercial banks preferred lending to other commercial banks. C. euro area commercial banks were compelled to increase deposits by ECB policy changes. D. the deposit rate increased.
Tariffs and quotas are effective in protecting industry
A. but at very high cost per job saved. B. and at very low cost per job saved. C. but have not saved any jobs in the industries. D. and do not distort the economy in the process.