When a Game Has More Than One Nash Equilibrium

question 58

Multiple Choice

When a game has more than one Nash equilibrium

• A) players will choose the strategies which maximize total welfare.
• B) players are likely to choose the strategies which minimize total welfare.
• C) it is difficult to predict which of the equilibria will occur or whether it is stable.
• D) it is difficult to predict which of the equilibria will occur but once one is reached it is likely to remain stable.

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Definitions:

Habits

Regular practices or routines that individuals perform, often automatically and without much thought, shaping behaviors and outcomes.

Natural Reward Strategies

Methods or approaches that utilize inherent satisfactions or biological rewards to reinforce particular behaviors.

Example

A specific case used to illustrate a rule, principle, or phenomenon.

Improvisation

The art of creating something spontaneously without preparation, often used in performance arts, but applicable in business problem-solving as well.