One Reason That DOWN,RIGHT Is Not a NASH Equilibrium Is

question 43

Multiple Choice

One reason that DOWN,RIGHT is not a NASH equilibrium is that

• A) Player B receives a payoff of 8 as opposed to the payoff of 20 that he would receive if he changed his strategy.
• B) Player B receives a payoff of 20 as opposed to the payoff of 30 that he would receive if he changed his strategy.
• C) Player A receives a payoff of 20 as opposed to the payoff of 30 that he would receive if he changed his strategy.
• D) DOWN,RIGHT is a Nash equilibrium.

---

Definitions:

Auctioneer

An individual or company that conducts auctions by accepting bids and declaring goods sold to the highest bidders.

First-Price Auctions

A type of auction in which the highest bid wins, and the winner pays the amount of their bid.

Highest Bid

The largest amount of money offered for a good or service in an auction.

Second-Highest Bidder

In auctions, the participant who places the second greatest bid, often relevant in contexts where the winner pays the price submitted by this bidder.