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Non-credible Threat




A non-credible threat is made on the hope that it will be believed, and therefore the threatened undesireable action will not need to be carried out. For a threat to be credible within an equilibrium, whenever a node is reached where a threat should be fulfilled, it will be fulfilled. Nash Equilibrium s rely on non-credible threats, however, the threats can be eliminated through Backward Induction .


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