A non-credible threat is a threat made by a player in a Sequential Game which would not be in the best interest for the player to carry out.
The hope is that the threat is believed in which case there is no need to carry it out. While Nash equilibria may depend on non-credible threats,
Backward Induction eliminates them.
updated: 15 August 2005
HOW TO CITE THIS ENTRY
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- Try the normal-form game solver to automatically calculate equilibria on the applets page.
- Take an online quiz on finding equilibria in normal-form games.