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Solution concept

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equilibrium no player's strategy is strictly dominated, in a PBE, for any information set no player's strategy is strictly dominated beginning at that information set. That is, for every belief that the player could hold at that information set there is no strategy that yields a greater expected payoff for that player. Unlike the above solution concepts, no player's strategy is strictly dominated beginning at any information set even if it is off the equilibrium path. Thus in PBE, players cannot threaten to play strategies that are strictly dominated beginning at any information set off the equilibrium path.
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another player is (i.e. there is imperfect and asymmetric information), that player may form a belief of what type that player is by observing that player's past actions. Hence the belief formed by that player of what the probability of the opponent being a certain type is based on the past play of
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In a Bayesian game a strategy determines what a player plays at every information set controlled by that player. The requirement that beliefs are consistent with strategies is something not specified by subgame perfection. Hence, PBE is a consistency condition on players' beliefs. Just as in a Nash
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For example, consider a dynamic game with an incumbent firm and a potential entrant to the industry. The incumbent has a monopoly and wants to maintain its market share. If the entrant enters, the incumbent can either fight or accommodate the entrant. If the incumbent accommodates, the entrant will
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In some games, there are multiple Nash equilibria, but not all of them are realistic. In dynamic games, backward induction can be used to eliminate unrealistic Nash equilibria. Backward induction assumes that players are rational and will make the best decisions based on their future expectations.
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The best response for the incumbent if the entrant enters is to accommodate, and the best response for the entrant if the incumbent accommodates is to enter. This results in a Nash equilibrium. However, if the incumbent chooses to fight, the best response for the entrant is to not enter. If the
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However, this second Nash equilibrium can be eliminated by backward induction because it relies on a noncredible threat from the incumbent. By the time the incumbent reaches the decision node where it can choose to fight, it would be irrational to do so because the entrant has already entered.
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Kohlberg and Mertens (1986) introduced the solution concept of Stable equilibrium, a refinement that satisfies forward induction. A counter-example was found where such a stable equilibrium did not satisfy backward induction. To resolve the problem
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is a formal rule for predicting how a game will be played. These predictions are called "solutions", and describe which strategies will be adopted by players and, therefore, the result of the game. The most commonly used solution concepts are
567:. In these cases, subgame perfection can be used. The eliminated Nash equilibrium described above is subgame imperfect because it is not a Nash equilibrium of the subgame that starts at the node reached once the entrant has entered. 585:, a game of imperfect information may have only one subgame – itself – and hence subgame perfection cannot be used to eliminate any Nash equilibria. A perfect Bayesian equilibrium (PBE) is a specification of players' strategies 307: 594:). In particular, the intuition of PBE is that it specifies player strategies that are rational given the player beliefs it specifies and the beliefs it specifies are consistent with the strategies it specifies. 526:
entrant does not enter, it does not matter what the incumbent chooses to do. Hence, fight can be considered a best response for the incumbent if the entrant does not enter, resulting in another Nash equilibrium.
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about which node in the information set has been reached by the play of the game. A belief about a decision node is the probability that a particular player thinks that node is or will be in play (on the
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when there is some other strategy available to the player that always has a higher payoff, regardless of the strategies that the other players choose. (Strictly dominated strategies are also important in
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to another player's strategy if there is no other strategy that could be played that would yield a higher pay-off in any situation in which the other player's strategy is played.
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A generalization of backward induction is subgame perfection. Backward induction assumes that all future play will be rational. In subgame perfect equilibria, play in every
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to narrow down the solutions. Each successive solution concept presented in the following improves on its predecessor by eliminating implausible equilibria in richer games.
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is so called because just as backward induction assumes future play will be rational, forward induction assumes past play was rational. Where a player does not know what
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Mertens, Jean-François, 1989. "Stable Equilibria - A reformulation. Part 1 Basic Definitions and Properties," Mathematics of Operations Research, Vol. 14, No. 4, Nov.
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is rational (specifically a Nash equilibrium). Backward induction can only be used in terminating (finite) games of definite length and cannot be applied to games with
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enter and gain profit. If the incumbent fights, it will lower its prices, run the entrant out of business (incurring exit costs), and damage its own profits.
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Many solution concepts, for many games, will result in more than one solution. This puts any one of the solutions in doubt, so a game theorist may apply a
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Sometimes subgame perfection does not impose a large enough restriction on unreasonable outcomes. For example, since subgames cannot cut through
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Govindan, Srihari & Robert Wilson, 2008. "Refinements of Nash Equilibrium," The New Palgrave Dictionary of Economics, 2nd Edition.
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This eliminates noncredible threats, which are threats that a player would not carry out if they were ever called upon to do so.
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Selected equilibrium refinements in game theory. Arrows point from a refinement to the more general concept (i.e., ESS
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in the name of this solution concept alludes to the fact that players update their beliefs according to
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concept, probably the first solution concept satisfying both forward and backward induction.
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Evolutionary stability in extensive two-person games – correction and further development
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that opponent being rational. A player may elect to signal his type through his actions.
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are eliminated from the set of strategies that might feasibly be played. A strategy is
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Therefore, backward induction eliminates this unrealistic Nash equilibrium.
799:," Econometrica, Econometric Society, vol. 54(5), pages 1003-37, September. 1954: 1454: 682:
Cho, I-K.; Kreps, D. M. (1987). "Signaling Games and Stable Equilibria".
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Multiagent Systems: Algorithmic, Game-Theoretic, and Logical Foundations
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Essentials of Game Theory: A Concise, Multidisciplinary Introduction
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for both players because either player is always better off playing
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In this solution concept, players are assumed to be rational and so
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An evolutionary analysis of backward and forward induction
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Evolutionary stable strategies: a review of basic theory
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Oddness of the number of equilibrium points: a new proof
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Evolutionary stability in extensive two-person games
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Formal rule for predicting how a game will be played
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Evolutionary stable sets in mixed-strategist models
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Kohlberg, Elon & Jean-François Mertens, 1986. "
640:Forward induction yields a unique solution for the 372: 343: 301: 236: 179: 155: 128: 102: 46: 939:Thomas, B. (1985a) On evolutionary stable sets. 973: 237:{\displaystyle \Pi _{G\in \Gamma }2^{S_{G}};} 110:be the class of all games and, for each game 8: 980: 966: 958: 915:Shoham, Yoav; Leyton-Brown, Kevin (2009). 803:Leyton-Brown, Kevin; Shoham, Yoav (2008). 697: 633:introduced what game theorists now call 356: 335: 314: 291: 286: 270: 252: 223: 218: 202: 196: 172: 147: 141: 115: 95: 39: 797:On the Strategic Stability of Equilibria 668: 429: 427:, regardless of what his opponent does. 383:Rationalizability and iterated dominance 29: 828:Noldeke, G. & Samuelson, L. (1993) 411:.) For example, in the (single period) 7: 774:International Journal of Game Theory 191:is an element of the direct product 344:{\displaystyle F(G)\subseteq S_{G}} 267: 1029:First-player and second-player win 491:) specifies that prisoner 1 plays 364: 277: 260: 209: 199: 123: 97: 25: 845:Evolution and the Theory of Games 2047:Game theory equilibrium concepts 1136:Coalition-proof Nash equilibrium 549:Subgame perfect Nash equilibrium 1146:Evolutionarily stable strategy 834:Games & Economic Behaviour 790:Theoretical Population Biology 685:Quarterly Journal of Economics 325: 319: 263: 1: 1074:Simultaneous action selection 396:strictly dominated strategies 373:{\displaystyle G\in \Gamma .} 2006:List of games in game theory 1186:Quantal response equilibrium 1176:Perfect Bayesian equilibrium 1111:Bayes correlated equilibrium 744:. Cambridge, Massachusetts: 571:Perfect Bayesian equilibrium 129:{\displaystyle G\in \Gamma } 1475:Optional prisoner's dilemma 1206:Self-confirming equilibrium 555:Subgame perfect equilibrium 2063: 1940:Principal variation search 1656:Aumann's agreement theorem 1319:Strategy-stealing argument 1231:Trembling hand equilibrium 1161:Markov perfect equilibrium 1156:Mertens-stable equilibrium 923:Cambridge University Press 659:Trembling hand equilibrium 635:Mertens-stable equilibrium 574: 552: 510: 472: 386: 1976:Combinatorial game theory 1635:Princess and monster game 1191:Quasi-perfect equilibrium 1116:Bayesian Nash equilibrium 419:is strictly dominated by 1991:Evolutionary game theory 1724:Antoine Augustin Cournot 1610:Guess 2/3 of the average 1407:Strictly determined game 1201:Satisfaction equilibrium 1019:Escalation of commitment 479:A Nash equilibrium is a 47:{\displaystyle \subset } 1996:Glossary of game theory 1595:Stackelberg competition 1221:Strong Nash equilibrium 865:A course in game theory 784:Hines, W. G. S. (1987) 665:The Intuitive Criterion 543:Stackelberg competition 103:{\displaystyle \Gamma } 2021:Tragedy of the commons 2001:List of game theorists 1981:Confrontation analysis 1691:Sprague–Grundy theorem 1211:Sequential equilibrium 1131:Correlated equilibrium 538:Monetary policy theory 374: 345: 303: 238: 181: 157: 130: 104: 55: 48: 1794:Jean-François Mertens 631:Jean-François Mertens 565:imperfect information 495:and prisoner 2 plays 443:Prisoner 1 Cooperate 375: 346: 304: 239: 182: 158: 156:{\displaystyle S_{G}} 131: 105: 49: 33: 1923:Search optimizations 1799:Jennifer Tour Chayes 1686:Revelation principle 1681:Purification theorem 1620:Nash bargaining game 1585:Bertrand competition 1570:El Farol Bar problem 1535:Electronic mail game 1500:Lewis signaling game 1044:Hierarchy of beliefs 859:Osborne, Martin J.; 669:Cho & Kreps 1987 435:Prisoner 2 Cooperate 355: 313: 251: 195: 171: 140: 114: 94: 69:equilibrium concepts 38: 1971:Bounded rationality 1590:Cournot competition 1540:Rock paper scissors 1515:Battle of the sexes 1505:Volunteer's dilemma 1377:Perfect information 1304:Dominant strategies 1141:Epsilon-equilibrium 1024:Extensive-form game 946:Thomas, B. (1985b) 654:Extensive form game 1950:Paranoid algorithm 1930:Alpha–beta pruning 1809:John Maynard Smith 1640:Rendezvous problem 1480:Traveler's dilemma 1470:Gift-exchange game 1465:Prisoner's dilemma 1382:Large Poisson game 1349:Bargaining problem 1254:Backward induction 1226:Subgame perfection 1181:Proper equilibrium 642:burning money game 513:Backward induction 507:Backward induction 454:Prisoner 1 Defect 438:Prisoner 2 Defect 413:prisoners' dilemma 401:strictly dominated 370: 341: 299: 234: 177: 153: 126: 100: 56: 44: 2029: 2028: 1935:Aspiration window 1904:Suzanne Scotchmer 1859:Oskar Morgenstern 1754:Donald B. Gillies 1696:Zermelo's theorem 1625:Induction puzzles 1580:Fair cake-cutting 1555:Public goods game 1485:Coordination game 1359:Intransitive game 1289:Forward induction 1171:Pareto efficiency 1151:Gibbs equilibrium 1121:Berge equilibrium 1069:Simultaneous game 952:Theor. Pop. Biol. 932:978-0-521-89943-7 878:978-0-262-65040-3 861:Rubinstein, Ariel 840:Maynard Smith, J. 816:978-1-59829-593-1 618:Forward induction 613:Forward induction 466: 465: 389:Rationalizability 180:{\displaystyle G} 165:strategy profiles 86:Formal definition 18:Forward induction 16:(Redirected from 2054: 2016:Topological game 2011:No-win situation 1909:Thomas Schelling 1889:Robert B. Wilson 1849:Merrill M. Flood 1819:John von Neumann 1729:Ariel Rubinstein 1714:Albert W. Tucker 1565:War of attrition 1525:Matching pennies 1166:Nash equilibrium 1089:Mechanism design 1054:Normal-form game 1009:Cooperative game 982: 975: 968: 959: 936: 882: 820: 759: 727: 701: 592:equilibrium path 583:information sets 481:strategy profile 475:Nash equilibrium 469:Nash equilibrium 430: 409:game-tree search 379: 377: 376: 371: 350: 348: 347: 342: 340: 339: 308: 306: 305: 300: 298: 297: 296: 295: 281: 280: 243: 241: 240: 235: 230: 229: 228: 227: 213: 212: 189:solution concept 186: 184: 183: 178: 162: 160: 159: 154: 152: 151: 135: 133: 132: 127: 109: 107: 106: 101: 73:Nash equilibrium 71:, most famously 64:solution concept 53: 51: 50: 45: 21: 2062: 2061: 2057: 2056: 2055: 2053: 2052: 2051: 2032: 2031: 2030: 2025: 1959: 1945:max^n algorithm 1918: 1914:William Vickrey 1874:Reinhard Selten 1829:Kenneth Binmore 1744:David K. Levine 1739:Daniel Kahneman 1706: 1700: 1676:Negamax theorem 1666:Minimax theorem 1644: 1605:Diner's dilemma 1460:All-pay auction 1426: 1412:Stochastic game 1364:Mean-field game 1335: 1328: 1299:Markov strategy 1235: 1101: 1093: 1064:Sequential game 1049:Information set 1034:Game complexity 1004:Congestion game 992: 986: 933: 914: 909:Math. Soc. Sci. 895:Math. Soc. Sci. 879: 858: 817: 802: 756: 732:Fudenberg, Drew 730: 708:10.2307/1885060 699:10.1.1.407.5013 681: 678: 650: 615: 579: 573: 557: 551: 515: 509: 477: 471: 415:(shown below), 391: 385: 353: 352: 331: 311: 310: 287: 282: 266: 249: 248: 219: 214: 198: 193: 192: 169: 168: 143: 138: 137: 112: 111: 92: 91: 88: 36: 35: 28: 23: 22: 15: 12: 11: 5: 2060: 2058: 2050: 2049: 2044: 2034: 2033: 2027: 2026: 2024: 2023: 2018: 2013: 2008: 2003: 1998: 1993: 1988: 1983: 1978: 1973: 1967: 1965: 1961: 1960: 1958: 1957: 1952: 1947: 1942: 1937: 1932: 1926: 1924: 1920: 1919: 1917: 1916: 1911: 1906: 1901: 1896: 1891: 1886: 1881: 1879:Robert Axelrod 1876: 1871: 1866: 1861: 1856: 1854:Olga Bondareva 1851: 1846: 1844:Melvin Dresher 1841: 1836: 1834:Leonid Hurwicz 1831: 1826: 1821: 1816: 1811: 1806: 1801: 1796: 1791: 1786: 1781: 1776: 1771: 1769:Harold W. Kuhn 1766: 1761: 1759:Drew Fudenberg 1756: 1751: 1749:David M. Kreps 1746: 1741: 1736: 1734:Claude Shannon 1731: 1726: 1721: 1716: 1710: 1708: 1702: 1701: 1699: 1698: 1693: 1688: 1683: 1678: 1673: 1671:Nash's theorem 1668: 1663: 1658: 1652: 1650: 1646: 1645: 1643: 1642: 1637: 1632: 1627: 1622: 1617: 1612: 1607: 1602: 1597: 1592: 1587: 1582: 1577: 1572: 1567: 1562: 1557: 1552: 1547: 1542: 1537: 1532: 1530:Ultimatum game 1527: 1522: 1517: 1512: 1510:Dollar auction 1507: 1502: 1497: 1495:Centipede game 1492: 1487: 1482: 1477: 1472: 1467: 1462: 1457: 1452: 1450:Infinite chess 1447: 1442: 1436: 1434: 1428: 1427: 1425: 1424: 1419: 1417:Symmetric game 1414: 1409: 1404: 1402:Signaling game 1399: 1397:Screening game 1394: 1389: 1387:Potential game 1384: 1379: 1374: 1366: 1361: 1356: 1351: 1346: 1340: 1338: 1330: 1329: 1327: 1326: 1321: 1316: 1314:Mixed strategy 1311: 1306: 1301: 1296: 1291: 1286: 1281: 1276: 1271: 1266: 1261: 1256: 1251: 1245: 1243: 1237: 1236: 1234: 1233: 1228: 1223: 1218: 1213: 1208: 1203: 1198: 1196:Risk dominance 1193: 1188: 1183: 1178: 1173: 1168: 1163: 1158: 1153: 1148: 1143: 1138: 1133: 1128: 1123: 1118: 1113: 1107: 1105: 1095: 1094: 1092: 1091: 1086: 1081: 1076: 1071: 1066: 1061: 1056: 1051: 1046: 1041: 1039:Graphical game 1036: 1031: 1026: 1021: 1016: 1011: 1006: 1000: 998: 994: 993: 987: 985: 984: 977: 970: 962: 956: 955: 944: 941:J. Math. Biol. 937: 931: 912: 898: 884: 877: 856: 837: 826: 821: 815: 800: 793: 782: 777: 763: 754: 728: 692:(2): 179–221. 677: 674: 673: 672: 661: 656: 649: 646: 614: 611: 607:Bayes' theorem 575:Main article: 572: 569: 553:Main article: 550: 547: 546: 545: 540: 511:Main article: 508: 505: 473:Main article: 470: 467: 464: 463: 458: 455: 451: 450: 447: 444: 440: 439: 436: 433: 387:Main article: 384: 381: 369: 366: 363: 360: 338: 334: 330: 327: 324: 321: 318: 294: 290: 285: 279: 276: 273: 269: 265: 262: 259: 256: 247:., a function 233: 226: 222: 217: 211: 208: 205: 201: 176: 163:be the set of 150: 146: 125: 122: 119: 99: 87: 84: 43: 26: 24: 14: 13: 10: 9: 6: 4: 3: 2: 2059: 2048: 2045: 2043: 2040: 2039: 2037: 2022: 2019: 2017: 2014: 2012: 2009: 2007: 2004: 2002: 1999: 1997: 1994: 1992: 1989: 1987: 1984: 1982: 1979: 1977: 1974: 1972: 1969: 1968: 1966: 1964:Miscellaneous 1962: 1956: 1953: 1951: 1948: 1946: 1943: 1941: 1938: 1936: 1933: 1931: 1928: 1927: 1925: 1921: 1915: 1912: 1910: 1907: 1905: 1902: 1900: 1899:Samuel Bowles 1897: 1895: 1894:Roger Myerson 1892: 1890: 1887: 1885: 1884:Robert Aumann 1882: 1880: 1877: 1875: 1872: 1870: 1867: 1865: 1862: 1860: 1857: 1855: 1852: 1850: 1847: 1845: 1842: 1840: 1839:Lloyd Shapley 1837: 1835: 1832: 1830: 1827: 1825: 1824:Kenneth Arrow 1822: 1820: 1817: 1815: 1812: 1810: 1807: 1805: 1804:John Harsanyi 1802: 1800: 1797: 1795: 1792: 1790: 1787: 1785: 1782: 1780: 1777: 1775: 1774:Herbert Simon 1772: 1770: 1767: 1765: 1762: 1760: 1757: 1755: 1752: 1750: 1747: 1745: 1742: 1740: 1737: 1735: 1732: 1730: 1727: 1725: 1722: 1720: 1717: 1715: 1712: 1711: 1709: 1703: 1697: 1694: 1692: 1689: 1687: 1684: 1682: 1679: 1677: 1674: 1672: 1669: 1667: 1664: 1662: 1659: 1657: 1654: 1653: 1651: 1647: 1641: 1638: 1636: 1633: 1631: 1628: 1626: 1623: 1621: 1618: 1616: 1613: 1611: 1608: 1606: 1603: 1601: 1598: 1596: 1593: 1591: 1588: 1586: 1583: 1581: 1578: 1576: 1575:Fair division 1573: 1571: 1568: 1566: 1563: 1561: 1558: 1556: 1553: 1551: 1550:Dictator game 1548: 1546: 1543: 1541: 1538: 1536: 1533: 1531: 1528: 1526: 1523: 1521: 1518: 1516: 1513: 1511: 1508: 1506: 1503: 1501: 1498: 1496: 1493: 1491: 1488: 1486: 1483: 1481: 1478: 1476: 1473: 1471: 1468: 1466: 1463: 1461: 1458: 1456: 1453: 1451: 1448: 1446: 1443: 1441: 1438: 1437: 1435: 1433: 1429: 1423: 1422:Zero-sum game 1420: 1418: 1415: 1413: 1410: 1408: 1405: 1403: 1400: 1398: 1395: 1393: 1392:Repeated game 1390: 1388: 1385: 1383: 1380: 1378: 1375: 1373: 1371: 1367: 1365: 1362: 1360: 1357: 1355: 1352: 1350: 1347: 1345: 1342: 1341: 1339: 1337: 1331: 1325: 1322: 1320: 1317: 1315: 1312: 1310: 1309:Pure strategy 1307: 1305: 1302: 1300: 1297: 1295: 1292: 1290: 1287: 1285: 1282: 1280: 1277: 1275: 1274:De-escalation 1272: 1270: 1267: 1265: 1262: 1260: 1257: 1255: 1252: 1250: 1247: 1246: 1244: 1242: 1238: 1232: 1229: 1227: 1224: 1222: 1219: 1217: 1216:Shapley value 1214: 1212: 1209: 1207: 1204: 1202: 1199: 1197: 1194: 1192: 1189: 1187: 1184: 1182: 1179: 1177: 1174: 1172: 1169: 1167: 1164: 1162: 1159: 1157: 1154: 1152: 1149: 1147: 1144: 1142: 1139: 1137: 1134: 1132: 1129: 1127: 1124: 1122: 1119: 1117: 1114: 1112: 1109: 1108: 1106: 1104: 1100: 1096: 1090: 1087: 1085: 1084:Succinct game 1082: 1080: 1077: 1075: 1072: 1070: 1067: 1065: 1062: 1060: 1057: 1055: 1052: 1050: 1047: 1045: 1042: 1040: 1037: 1035: 1032: 1030: 1027: 1025: 1022: 1020: 1017: 1015: 1012: 1010: 1007: 1005: 1002: 1001: 999: 995: 991: 983: 978: 976: 971: 969: 964: 963: 960: 953: 949: 945: 942: 938: 934: 928: 924: 920: 919: 913: 910: 906: 902: 899: 896: 892: 888: 885: 880: 874: 870: 866: 862: 857: 855: 854:0-521-28884-3 851: 847: 846: 841: 838: 835: 831: 827: 825: 822: 818: 812: 808: 807: 801: 798: 794: 791: 787: 783: 781: 778: 775: 771: 767: 764: 762: 761:Book preview. 757: 755:9780262061414 751: 747: 743: 742: 737: 733: 729: 725: 721: 717: 713: 709: 705: 700: 695: 691: 687: 686: 680: 679: 675: 670: 666: 662: 660: 657: 655: 652: 651: 647: 645: 643: 638: 636: 632: 626: 623: 619: 612: 610: 608: 604: 599: 595: 593: 588: 584: 578: 577:Bayesian game 570: 568: 566: 562: 556: 548: 544: 541: 539: 536: 535: 534: 531: 527: 523: 519: 514: 506: 504: 502: 501:best response 498: 494: 490: 486: 482: 476: 468: 462: 459: 456: 453: 452: 448: 445: 442: 441: 437: 434: 432: 431: 428: 426: 422: 418: 414: 410: 407: 402: 398: 397: 390: 382: 380: 367: 361: 358: 336: 332: 328: 322: 316: 292: 288: 283: 274: 271: 257: 254: 246: 231: 224: 220: 215: 206: 203: 190: 174: 166: 148: 144: 120: 117: 85: 83: 81: 76: 74: 70: 65: 61: 41: 32: 19: 1869:Peyton Young 1864:Paul Milgrom 1779:Hervé Moulin 1719:Amos Tversky 1661:Folk theorem 1372:-player game 1369: 1294:Grim trigger 1102: 951: 940: 921:. New York: 917: 908: 894: 864: 843: 833: 805: 789: 773: 766:Harsanyi, J. 740: 736:Tirole, Jean 689: 683: 639: 627: 621: 617: 616: 602: 600: 596: 591: 586: 580: 558: 532: 528: 524: 520: 516: 496: 492: 488: 484: 478: 460: 424: 420: 416: 394: 392: 244: 188: 89: 79: 77: 63: 57: 2042:Game theory 1986:Coopetition 1789:Jean Tirole 1784:John Conway 1764:Eric Maskin 1560:Blotto game 1545:Pirate game 1354:Global game 1324:Tit for tat 1259:Bid shading 1249:Appeasement 1099:Equilibrium 1079:Solved game 1014:Determinacy 997:Definitions 990:game theory 943:22:105–115. 792:31:195–272. 741:Game Theory 587:and beliefs 60:game theory 2036:Categories 1630:Trust game 1615:Kuhn poker 1284:Escalation 1279:Deterrence 1269:Cheap talk 1241:Strategies 1059:Preference 988:Topics of 954:28:332–341 911:16:223–266 901:Selten, R. 897:5:269–363. 887:Selten, R. 836:5:425–454. 776:2:235–250. 676:References 533:See also: 446:−0.5, −0.5 309:such that 80:refinement 1814:John Nash 1520:Stag hunt 1264:Collusion 869:MIT Press 746:MIT Press 724:154404556 694:CiteSeerX 493:cooperate 485:cooperate 417:cooperate 365:Γ 362:∈ 329:⊆ 278:Γ 275:∈ 268:⋃ 264:→ 261:Γ 210:Γ 207:∈ 200:Π 124:Γ 121:∈ 98:Γ 42:⊂ 1955:Lazy SMP 1649:Theorems 1600:Deadlock 1455:Checkers 1336:of games 1103:concepts 863:(1994). 738:(1991). 648:See also 603:Bayesian 351:for all 54:Proper). 1707:figures 1490:Chicken 1344:Auction 1334:Classes 903:(1988) 889:(1983) 842:(1982) 768:(1973) 716:1885060 561:subgame 449:−10, 0 406:minimax 929:  875:  852:  813:  752:  722:  714:  696:  497:defect 489:defect 461:−2, −2 457:0, −10 425:defect 421:defect 136:, let 1445:Chess 1432:Games 720:S2CID 712:JSTOR 1126:Core 927:ISBN 873:ISBN 850:ISBN 811:ISBN 750:ISBN 622:type 601:The 187:. A 90:Let 62:, a 1705:Key 848:. 704:doi 690:102 667:" ( 245:i.e 167:of 58:In 2038:: 1440:Go 950:. 925:. 907:. 893:. 871:. 867:. 832:. 788:. 772:. 748:. 734:; 718:. 710:. 702:. 688:. 644:. 487:, 75:. 1370:n 981:e 974:t 967:v 935:. 883:. 881:. 819:. 758:. 726:. 706:: 671:) 663:" 368:. 359:G 337:G 333:S 326:) 323:G 320:( 317:F 293:G 289:S 284:2 272:G 258:: 255:F 232:; 225:G 221:S 216:2 204:G 175:G 149:G 145:S 118:G 20:)

Index

Forward induction

game theory
equilibrium concepts
Nash equilibrium
strategy profiles
Rationalizability
strictly dominated strategies
strictly dominated
minimax
game-tree search
prisoners' dilemma
Nash equilibrium
strategy profile
best response
Backward induction
Monetary policy theory
Stackelberg competition
Subgame perfect equilibrium
subgame
imperfect information
Bayesian game
information sets
Bayes' theorem
Jean-François Mertens
Mertens-stable equilibrium
burning money game
Extensive form game
Trembling hand equilibrium
The Intuitive Criterion

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