Question

Which of the following statements about Nash equilibrium is incorrect?

• A. It represents a situation where no player can benefit by unilaterally changing their strategy.
• B. It guarantees the highest possible payoff for all players.
• C. It can occur in both cooperative and non-cooperative games.
• D. It is named after mathematician John Nash.

Answer 1

Answer:

B. It guarantees the highest possible payoff for all players.

Nash equilibrium does not guarantee the highest possible payoff for all players; it simply indicates that no player can improve their payoff by changing their strategy unilaterally.