Selten's 'chain store paradox' literature demonstrates that backward induction conclusions are undermined when players assign non-zero probability to boundedly rational or cooperative opponent types.

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Chain store paradox(as the specific game theory problem being discussed): A famous thought experiment in game theory that shows a store owner's logical reasoning about when to fight competitors can lead to conclusions that don't match real-world behavior.
Game theory(mathematics and philosophy): The mathematical study of strategic interactions where each person's outcome depends not just on their own choices, but on what other people choose to do.
Non-zero probability(as used to describe how likely players think their opponents might be irrational): A reasonable chance that something might happen—not impossible, but not guaranteed; it has some likelihood greater than zero.
Selten(the statement refers to his specific concept): Reinhard Selten was a German economist and game theorist who won the Nobel Prize for developing new ways to analyze strategic situations where people make decisions affecting each other.

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