Question from Past Microeconomics Qualifying ExamEdit
Spring 2000- Section I, Question seven, George Mason University
True, False, Uncertain. Determine whether or not each of the following statements are true or false. Explain your reasoning briefly in a paragraph or two. (The explanation is often more important than the answer given). Include a carefully labeled diagram or game matrix if it helps to clarify your answer.
The Nash equilibrium of a two-person two-strategy game is always Pareto suboptimal.
False, Give counter example by showing a game where this does not hold.