economics hard MCQ

In Game Theory, a situation where no player has an incentive to change their strategy, given the strategy chosen by the other player, is called a:

  1. Zero-sum game
  2. Prisoner's Dilemma
  3. Nash Equilibrium
  4. Dominant Strategy

Answer: Nash Equilibrium

Named after mathematician John Nash, this equilibrium concept describes a stable state in a strategic interaction. Each player is making the best possible decision they can, taking into account the decisions of the other players, meaning no unilateral deviation is profitable.

Topic Microeconomics - Game Theory
Exam Relevance UPSC Prelims, SSC CGL
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