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How do interacting decision-makers make strategic choices? If they\'re rational and can somehow predict each other\'s behavior, they may find themselves in a Nash equilibrium.
This has led to the growth of Behavioral Game theory, which accounts for how people actually make strategic decisions by incorporating social prefe.
They often do not conform to the predictions of the Nash equilibrium, or its various refinements.
However, humans display pervasive and systematic departures from rationality.
How do interacting decision-makers make strategic choices? If they\'re rational and can somehow predict each other\'s behavior, they may find themselves in a Nash equilibrium
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