New study reveals how unique equilibriums are selected in games.
The article explains how a specific equilibrium is chosen in games with uncertainty. It introduces new ideas like p-dominance and stochastic potential to show that a Nash-equilibrium is picked when its p-dominance is lower than the stochastic potential. This applies to many-action games, not just simple ones. Even in games without clear winning strategies, the set of equilibria is smaller and simpler than expected. These new concepts help understand how the set of equilibria changes based on how much players know in common.