In any game without dominant strategies but for which there exists Nash equilibria, our best solution is that a Nash equilibrium will be the outcome. In some games however with multiple equilibria whose payoffs are similar this isn't always very clear guidance, but in some games, such as the last one we examined, it will be fairly clear which equilibrium is the best solution to predict.

   To be sure you understand Nash equilibria, see if you can explain to yourself why all dominant strategy equilibria are Nash equilibria, but not all Nash equilibria are dominant strategy equilibria.

Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved