Description |
To begin our analysis we discuss the concept of strategic dominance. Then we will turn to the more precisely relevant concept of "never a best response." These notions will be the foundation for our study of nonequilibrium solution concepts. These concepts are nonequilibrium in the sense that they typically admit outcomes which are not Nash equilibria. If we can make a useful prediction using only nonequilibrium analysis, our conclusion can be much more compelling than if we had achieved the same result using the much stronger (and frequently more dubious) assumptions required by equilibrium analysis. Furthermore, by applying nonequilibrium techniques in our initial analysis of a game we will frequently greatly simplify our subsequent equilibrium analysis. |