| Question |
Recognize each of the following statements as being true or false and explain why. A. A set of strategies constitutes a Nash equilibrium if no player can improve their position given the strategies chosen by other players. B. A secure strategy is very conservative and should only be considered if the rival’s optimal strategy is identical. C. A dominant strategy is also a secure strategy, but every secure strategy is not necessarily a dominant strategy. D. In a one-shot game, the Nash equilibrium is also the best outcome that can be achieved under collusion. E. If a player has no dominant strategy, it pays to look at the game from the rival’s perspective and anticipate the rival choosing its dominant strategy. |
