Explain three refinements to the concept of Nash Equilibrium that are used to bolster its effectiveness.

Nash Equilibrium is the perennial theme we have studied in this class. It is central to our analysis of games and indispensable to a game theorist’s toolkit. However, Nash Equilibrium may not always provide us with a “satisfactory” solution. In a short essay response (4-6 paragraphs), explain why this could be the case, i.e., Nash Equilibrium not yielding a satisfactory solution. Also, explain three refinements to the concept of Nash Equilibrium that are used to bolster its effectiveness.

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