Equilibrium selection

Equilibrium selection refers to the process of determining which possible outcome a strategic situation will settle into when multiple stable options exist. In scenarios where players' choices can lead to different predictable results (equilibria), equilibrium selection explores why certain outcomes are more likely to occur than others. This involves considering factors like players' expectations, payoffs, and external influences, helping to predict which equilibrium is most plausible in real-world situations. Essentially, it explains how and why, among several stable possibilities, the most "chosen" outcome emerges.