Occurrence
If a game has a unique Nash equilibrium and is played among players under certain conditions, then the NE strategy set will be adopted. Sufficient conditions to guarantee that the Nash equilibrium is played are:
- The players all will do their utmost to maximize their expected payoff as described by the game.
- The players are flawless in execution.
- The players have sufficient intelligence to deduce the solution.
- The players know the planned equilibrium strategy of all of the other players.
- The players believe that a deviation in their own strategy will not cause deviations by any other players.
- There is common knowledge that all players meet these conditions, including this one. So, not only must each player know the other players meet the conditions, but also they must know that they all know that they meet them, and know that they know that they know that they meet them, and so on.
Read more about this topic: Nash Equilibrium
Famous quotes containing the word occurrence:
“One is absolutely sickened, not by the crimes that the wicked have committed, but by the punishments that the good have inflicted; and a community is infinitely more brutalised by the habitual employment of punishment than it is by the occasional occurrence of crime.”
—Oscar Wilde (1854–1900)