The principle of a Nash Equilibrium can be summarized as "Structure the law so as to remove the impediments to private agreements".  True  Fals

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The principle of a Nash Equilibrium can be summarized as "Structure the law so as to remove the impediments to private agreements".

 True

 False

 

Expert Solution
Step 1: define Nash Equilibrium:

The game theory notion of Nash Equilibrium is focused on the actions of rational actors in strategic contexts. It has nothing specifically to do with how legal formations are constructed.

Each player in a game picks their optimal course of action given the course of action chosen by the other players, and there is no incentive for any player to unilaterally change their course of action. This situation is known as a Nash equilibrium. It is a term used to denote stable results in multiplayer games.

Instead of expressing Nash Equilibrium, the statement you made seems to be more concerned with the idea of encouraging private transactions through contract law or other legal frameworks.


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