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Non-cooperative Games

Author

Listed:
  • van Damme, E.E.C.

    (Tilburg University, Center For Economic Research)

Abstract

We describe non-cooperative 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.
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Suggested Citation

  • van Damme, E.E.C., 2000. "Non-cooperative Games," Discussion Paper 2000-96, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:51465233-a356-4d20-acc4-c29c1ada82e0
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    File URL: https://repository.tilburguniversity.edu/bitstreams/99301a14-2318-4fba-bf80-0c6c5b8842ca/download
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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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