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:
- Zero-sum game
- Prisoner's Dilemma
- Nash Equilibrium
- 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.