Game Theory Breakthrough: Equilibrium Emerges from Imperfect Player Decisions
The Theory of Learning in Games suggests that equilibrium in games doesn't always come from players being super rational. Instead, it can happen when players who aren't fully rational try to make the best choices over time. This new idea challenges the traditional view that equilibrium comes from everyone knowing all the game rules and being super logical. The models explored in the theory lay a foundation for understanding equilibrium in games and offer new ways for economists to think about and improve traditional equilibrium concepts.