Asked by Courtney Gardner on Jun 11, 2024
Verified
What is the Nash equilibrium of this simultaneous game?
A) Steal,Vigilant
B) Steal,Not vigilant
C) Not steal,Vigilant
D) The game has no Nash equilibrium
Nash Equilibrium
A concept within game theory where each player's strategy is optimal given the strategies of all other players, and no player has anything to gain by changing only their own strategy.
Simultaneous Game
A strategic game where all players make their decisions at the same time, often used in the context of game theory to analyze competitive situations.
Shoplifter
An individual who steals goods from a retail establishment.
- Achieve an appreciation of what Nash Equilibrium signifies in game theory.
Verified Answer
CT
Consuelo TaverasJun 13, 2024
Final Answer :
D
Explanation :
In a Nash equilibrium, each player's strategy is optimal given the other player's strategy. Here, no single strategy pair meets the criteria for a Nash equilibrium. If the shoplifter decides to steal, the guard's best response is to be vigilant, but then the shoplifter's best response would be not to steal, which in turn would make the guard's best response to not be vigilant. This cycle indicates that there is no stable strategy pair where both players' strategies are best responses to each other, leading to the conclusion that the game has no Nash equilibrium.
Learning Objectives
- Achieve an appreciation of what Nash Equilibrium signifies in game theory.