Final answer:
A Nash Equilibrium occurs when each player in a game maximizes their outcomes based on other players' strategies and cannot benefit by changing their strategy alone. It focuses on individual utility maximization rather than aggregate welfare, which is a different economic concept associated with perfectly competitive markets.
Step-by-step explanation:
In the context of game theory, a Nash Equilibrium is a situation where each player in a game is maximizing their payoffs given the other players' current strategies, and no player can benefit by changing their own strategy unilaterally. This translates to the scenario where José is looking for a strategy that provides him with the greatest utility, meaning he aims to reach a level of satisfaction or happiness with his choices that cannot be improved by changing his strategy, assuming others keep theirs constant. It's important to note that Nash Equilibrium doesn't necessarily result in the greatest aggregate welfare, as it doesn't always lead to the most efficient economic outcome characterized by allocative and productive efficiency seen in perfectly competitive markets.