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    An equilibrium sustained by an off-path action that would... — Carmelics
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    Challenges→The fourth Nash Equilibrium (R, r2, r3) arises because Player III's entire information set is off the path of play when Player I plays R and Player II plays r2, making Player III's action inconsequential to the outcome.

    An equilibrium sustained by an off-path action that would never be rational given any consistent belief is eliminated by forward induction, undermining the equilibrium's stability.

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    Key Terms

    Consistent belief(epistemology and logic)
    A set of ideas about what's true that don't contradict each other and align with available evidence.
    Forward Induction(Game theory; contrasted with treating deviations as mere errors)
    A reasoning process in which players interpret a deviation from a pre-game Backward Induction strategy as potentially informative about the deviating player's future intentions, resources, or type.
    Off-path action(game theory)
    A choice or move that doesn't actually happen in the predicted outcome, but could theoretically occur if someone deviated from the expected strategy.
    Rational
    # Rational A rational person is someone who makes decisions based on logic and evidence rather than emotions or hunches. Rational thinking means carefully considering the facts, weighing pros and cons, and coming to conclusions that make sense. It's the opposite of acting impulsively or based on feelings alone.

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    Stability (in equilibrium)(game theory)
    The quality of an outcome being resistant to collapse—meaning it will hold up even when players think carefully about whether to stick with it.
    equilibrium(Game-theoretic analysis of revolt in networks)
    A stable state configuration in which, given the thresholds and knowledge structure, the specified pattern of revolt is sustained because at least the threshold number of players revolt in every relevant state.

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    Social Contract1 linkedConsequentialism1 linked

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    The fourth Nash Equilibrium (R, r2, r3) arises because Player III's entire infor...

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