Answered: Explain the difference between a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Explain the difference between a Bayesian-Nash Equilibrium and a Nash Equilibrium.

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Bayesian-Nash equilibrium-

A Bayesian Nash equilibrium (BNE) is a technique configuration that optimizes the immediate result for each player by considering their assumptions along with the other players' techniques.

Nash equilibrium-

Nash equilibrium is a game theory concept that states that the best situation of a game is one in which there is no inducement to stray from the beginning strategy. More particularly, the Nash equilibrium is a game theory notion in which the ideal outcome of a game is one in which no player has an opportunity to stray from their selected strategy after taking an opposition's choice into account.

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