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    Question

    In game theory and economic theory, a mathematical representation of a situation in which each participant's gain or loss of utility is exactly balanced by the losses or gains of the utility of the other participants, is known as:

    A Nash Equilibrium Correct Answer Incorrect Answer
    B Zero-sum game Correct Answer Incorrect Answer
    C Non-zero-sum Correct Answer Incorrect Answer
    D Zero Game Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Nash Equilibrium is a stable state of a system involving the interaction of different participants, in which no participant can gain by a unilateral change of strategy if the strategies of the others remain unchanged. The Nash equilibrium is one of the foundational concepts in Game Theory. In Zero-Sum game , if the total gains of the participants are added up and the total losses are subtracted, they will sum to zero. In contrast, non-zero-sum describes a situation in which the interacting parties' aggregate gains and losses can be less than or more than zero. A zero-sum game is also called a strictly competitive game while non-zero-sum games can be either competitive or non-competitive The Zero Game is the game where neither player has any legal options.

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