Unformatted text preview: players' actions are not necessarily deterministic. Nash equilibrium is a steady state solution concept in which each player's decision depends on knowledge of the equilibrium. In Chapter 4 we study the deductive solution concepts of rationalizability and iterated elimination of dominated actions, in which the players are not assumed to know the equilibrium. Chapter 5 describes a model of knowledge that allows us to examine formally the assumptions that underlie the solutions that we have defined....
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- Spring '10
- Game Theory, Nash, Morgenstern, Neumann, mixed strategy equilibrium