Posted by G on .
I am on the chapter for Oligopoly in my economic book.
I have the following question:
Define Nash equilibrium. What is the Nash equilbrium for trade policy?
I can define the Nash equilbrium. The Nash equilibrium is a situation in which economic actors interacting with one another each choose their best strategy given the stategies that all the other actors have chosen.
I am not clear on the second part of the question. What is the Nash Equilbrium for trade? The book does not state a Nash equilibrium for trade polocy.
Since in trade there would be many actors. I am not sure how to answer this part to the question?