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When participants in a game choose to take actions that result in a Nash equilibrium, no single participant has an incentive to change its action.

When participants in a game choose to take actions that result in a Nash equilibrium,

  • no single participant has an incentive to change its action.
  • each participant has chosen the best action possible, given what the others have chosen.
  • no other set of actions could make ALL participants better off.
  • A strategy that leads to the best outcome for a firm no matter what strategy the other chooses.
  • All of the choices are correct.

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