Rational Behavior in Games Upends Traditional Assumptions, Reshaping Strategic Interactions
The article explores how players' rationality and information in games can lead to outcomes beyond Nash equilibria. It introduces the concept of rationalizability to identify reasonable strategies. Not all Nash equilibria are sensible, and some reasonable strategies may not be Nash equilibria. The idea of imperfect equilibria challenges traditional equilibrium definitions. The paper aims to make progress in defining equilibrium concepts in noncooperative games.