ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Nash equilibrium means that each players in a game chooses the action that maximizes his/her payoff, given the actions of other players in the game (also called noncooperative equilibrium).

Detailed explanation-2: -The Nash equilibrium is a decision-making theorem within game theory that states a player can achieve the desired outcome by not deviating from their initial strategy. In the Nash equilibrium, each player’s strategy is optimal when considering the decisions of other players.

Detailed explanation-3: -Nash equilibrium, also called Nash solution, in game theory, an outcome in a noncooperative game for two or more players in which no player’s expected outcome can be improved by changing one’s own strategy.

Detailed explanation-4: -Nash equilibrium is achieved in a game when no player has any incentive for deviating from their own strategy, even if they know the other players’ strategies. In economic theory, the Nash equilibrium is used to illustrate that decision-making is a system of strategic interactions based on the actions of other players.

Detailed explanation-5: -When participants in a game choose to take action that represents a Nash equilibrium, no single participant has an incentive to change its action, and each participant has chosen the best action possible given what the others have chosen.