Staff Report 57

A Generalized Equilibrium Solution for Game Theory

John Bryant

Revised August 1, 1981

Iterated contraction by dominance produces a generalized equilibrium. This solution to game theory is motivated, generated, analyzed, and compared to Nash equilibrium. One implication drawn is that a realized event in a social situation need not be uniquely determined by simple individual choices, even though the preference orderings implying those choices are the appropriate primitive.

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