Which of the Following Is an Incorrect Statement About a Nash

question 76

Multiple Choice

Which of the following is an incorrect statement about a Nash equilibrium?

• A) In a Nash equilibrium, all players are better off than they would be with any other combination of strategies.
• B) A Nash equilibrium is an example of a non- cooperative equilibrium.
• C) In a Nash equilibrium, all players are maximizing their payoffs given the current behaviour of the other players.
• D) Once a Nash equilibrium is established, no individual firm has an incentive to depart from it.
• E) A Nash equilibrium is a self- policing equilibrium.

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