Dictionary

Glossary of game theory terms.

Non-credible Threat

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
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