Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Chapter 13, Problem 13Q
To determine
An explanation for real-life deviations from Nash equilibria.
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You have just played rock, paper, scissors with your friend. You chose scissors and he chose paper, so you won. Is this a Nash equilibrium? Explain why or why not.
True or False: It is impossible to have more than one Nash Equilibrium.
*
True
False
Nash equilibrium refers to the optimal outcome of a game where there is no incentive for the players to deviate from their initial strategy. An individual (or player) can receive no incremental benefit from changing actions, assuming other players remain constant in their strategies. Given this premise, can there be a no Nash equilibrium?
Chapter 13 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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