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07.9 - Sophia Antipolis
07.9 - Sophia Antipolis

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Thm

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Lecture Notes on Game Theory

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Noncooperative Convex Games: Computing

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14.12 Game Theory Lecture Notes Lectures 15-18

... Recall that in games with complete information some Nash equilibria may be based on the assumption that some players will act sequentially irrationally at certain information sets off the path of equilibrium. In those games we ignored these equilibria by focusing on subgame perfect equilibria; in the ...
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Course Instructors TAs :

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< 1 ... 7 8 9 10 11 12 13 14 15 ... 18 >

Nash equilibrium

In game theory, the Nash equilibrium is a solution concept of a non-cooperative game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy. If each player has chosen a strategy and no player can benefit by changing strategies while the other players keep theirs unchanged, then the current set of strategy choices and the corresponding payoffs constitutes a Nash equilibrium. The reality of the Nash equilibrium of a game can be tested using experimental economics method. Stated simply, Amy and Will are in Nash equilibrium if Amy is making the best decision she can, taking into account Will's decision while Will's decision remains unchanged, and Will is making the best decision he can, taking into account Amy's decision while Amy's decision remains unchanged. Likewise, a group of players are in Nash equilibrium if each one is making the best decision possible, taking into account the decisions of the others in the game as long the other party's decision remains unchanged.
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