Pre-play negotiations boost cooperation and reveal hidden strategic insights
The article explores why players may not always end up playing Nash equilibrium in strategic games, focusing on pre-play communication and learning. Through experiments, it was found that communication can increase cooperation in games. The researchers developed a theory of negotiation that shows how a preference for honesty can lead to non-Nash outcomes. They also discovered that impatience can be beneficial in negotiations and that complex beliefs about opponents' strategies can lead to different equilibrium concepts. Overall, the study suggests that Nash equilibrium may not always be the best prediction in certain game scenarios.