The Selection Principle in Games

Abstract

We intend to solve the uniqueness problem of equilibria for all games. We introduce a new rationality criterion for games, which rules out many equilibria. Our selection principle is based on the argument that since the players know the set of potential equilibria of a game, they will actively select an equilibrium in their own interest. We show the existence and uniqueness of the selectable equilibrium. We also propose a selection mechanism by which all selectable equilibria can be identified.