Folk Theorem

  • 1 Posts
  • 1 Sections
  • 1 Types
August 31, 2024 4 min read Definitions
Folk Theorem: A Key Concept in Game Theory
Mathematics Economics Game Theory Folk Theorem Game Theory Nash Equilibrium Repeated Games Security Pay-Off
The Folk Theorem explains that in an infinitely repeated game, any outcome in which each player receives at least their security pay-off can be an equilibrium. It is a fundamental result in game theory that was accepted informally before a formal proof was established.
Read more about Folk Theorem: A Key Concept in Game Theory.

Finance Dictionary Pro

Our mission is to empower you with the tools and knowledge you need to make informed decisions, understand intricate financial concepts, and stay ahead in an ever-evolving market.