Equilibrium refinement

Equilibrium refinement is a way of narrowing down the possible outcomes in strategic situations, like game playing, to identify the most reasonable and stable scenarios. While basic concepts like Nash equilibrium find strategies where no player wants to change their choice alone, refinements add extra criteria to exclude less realistic outcomes. These refinements help predict more plausible behaviors by considering factors like credible threats or rational decision-making under specific rules. In essence, equilibrium refinement sharpens the predictions by filtering out unlikely or unstable solutions, leading to a clearer understanding of how rational players would behave in complex strategic interactions.