Question

QUESTION 52

1. An equilibrium in a game in which players pursue their own self-interests and do not cooperate is called a

   		prisoner's dilemma equilibrium.
   		cartel equilibrium.
   		noncooperative equilibrium.
   		dominant strategy equilibrium.

Answer 1

Answer : (B) Noncooperative Equilibrium

*Explanation :

   In Noncooperative Equilibrium Players Pursue Their Own Self-interests and They do Not Cooperate Each Other.

=> In Prisoner's Dilemma Equilibrium Prisoner Persuing Dominant Strategies For That It Result Noncooperation.both are Different.

=> In noncooperative equilibrium Every player Wins Because every player Gain The Output Which they Desire. in that Game Person Made Their Own rule And Player Cannot Make Groups They Must complete it Independently.It Is Opposite Of cooperative Games.

=> In noncooperative equilibrium Person want to Play Game Independently So They pursue Their self-Interest And do Not cooperate In It and Player do Not Wants other Player Cooperation Too. Therefor They Want to Gain Maximum Output They Want.