This chapter examines the conceptual foundations of the concept of strategic equilibrium and its various variants and refinements. The emphasis is very much on the underlying ideas rather than on any technical details.After an examination of some pre-equilibrium ideas, in particular the concept...

The central concept of noncooperative game theory is that of the \emph{strategic equilibrium} (or Nash equilibrium, or noncooperative equilibrium). In this chapter we discuss some of the conceptual issues surrounding this concept and its refinements. Many of these issues have received increasing...

This business problem for microeconomic students might be used as part of a problem set or as a take-home exam. It highlights the importance of marginal analysis and the implications of the fact that rational individuals will undertake the most cost-effective measures first. Copyright 1997 by...