Introduction: On equilibrium selection

Abstract

In this introductory chapter we first introduce the problem of equilibrium selection and outline the program of equilibrium selection theory (Section 1). Examples of strategic games with multiple equilibria are given in Section 2 which already indicate how to select between equilibria. In Section 3 we briefly review the most well-known refinements of the equilibrium concept and discuss the basic differences between the refinement and the equilibrium selection approach. The pioneering contributions to equilibrium selection theory by NASH (1950 and 1953) as well as HARSANYI and SELTEN (1988) are described in Section 4 where we try to avoid technical details as far as possible. In Section 5 we briefly review the remaining chapters of this study. By reading this Introduction the reader should already understand the program of equilibrium selection theory as well as the specific aspects of our approach.