Economics · Properties of Nash Equilibrium
Consider these statements about Nash equilibrium: A. A Nash equilibrium is always Pareto optimal. B. Every finite normal-form game has at least one Nash equilibrium (possibly in mixed strategies). C. A dominant strategy equilibrium is necessarily a Nash equilibrium. D. A Nash equilibrium in a repeated game need not coincide with the Nash equilibrium of the stage game. E. In a Nash equilibrium, no player can benefit from a unilateral deviation. Choose the CORRECT statements:
- 1A, C and D only
- 2B and E only
- 3A, B, C and E only
- 4B, C, D and E only✓
Correct answer
B, C, D and E only
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