Structural Models of Nonequilibrium Strategic Thinking: Theory, Evidence, and Applications (original) (raw)

This paper explores structural models of nonequilibrium strategic thinking, challenging the conventional reliance on equilibrium assumptions in game theory. Through an examination of empirical studies and theoretical perspectives, it highlights that initial responses in games often deviate from equilibrium and that level-k or cognitive hierarchy models offer improved predictive accuracy. The implications of these findings are discussed in terms of their applications in economics and the understanding of strategic behavior.