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Homework answers / question archive / 1-A Nash equilibrium: A- sometimes may not be reached because people assume others react rationally
1-A Nash equilibrium: A- sometimes may not be reached because people assume others react rationally. B- sometimes may not be reached because people do not assume that others act rationally. C- is always reached in game playing. D- will always be reached. Please indicate the correct answer.
Answer - correct option is B
Reason - Nash equilibrium sometimes may not be reached people do not assume that others act rationally This is because nash equilibrium may not necessarily be Pareto optimal and it may also result in non rational consequences in sequential games as people may threaten each other with non rational moves.
Other option are wrong because -