Game theory: Noncooperative games

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Abstract

We describe noncooperative game models and discuss game theoretic solution concepts. Some applications are also noted. Conventional theory focuses on the question ‘how will rational players play?’, and has the Nash equilibrium at its core. We discuss this concept and its interpretations, as well as refinements (perfect and stable equilibria) and relaxations (rationalizability and correlated equilibria). Motivated by experiments that show systematic theory violations, behavioral game theory aims to integrate insights from psychology to get better answers to the question ‘how do humans play?’. We provide an overview of the observed regularities and briefly sketch (beginnings of) theories of boundedly rational play.
Original languageEnglish
Title of host publicationInternational Encyclopedia of the Social & Behavioral Sciences
EditorsJ. Wright
Place of PublicationOxford
PublisherElsevier
Pages582-591
Number of pages11
Volume9
Edition2nd
ISBN (Print)9780080970868
DOIs
Publication statusPublished - 2015

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van Damme, E. E. C. (2015). Game theory: Noncooperative games. In J. Wright (Ed.), International Encyclopedia of the Social & Behavioral Sciences (2nd ed., Vol. 9, pp. 582-591). Elsevier. https://doi.org/10.1016/B978-0-08-097086-8.71048-8