In what sense does Nash equilibrium yield sharper predictions than iterated deletion of strictly dominated strategies...

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In what sense does Nash equilibrium yield sharper predictions than iterated deletion of strictly dominated strategies (ISD)? Your answer should be a precise fact. Explain carefully the argument establishing this fact. Note: Unlike most problem set questions, this one merely asks you to repeat a fact and an argument covered in class. Why? This fact and this reasoning are very important for understanding that ISD and Nash equilibrium aren't random unrelated concepts and for appreciating the motivation behind these concepts. In what sense does Nash equilibrium yield sharper predictions than iterated deletion of strictly dominated strategies (ISD)? Your answer should be a precise fact. Explain carefully the argument establishing this fact. Note: Unlike most problem set questions, this one merely asks you to repeat a fact and an argument covered in class. Why? This fact and this reasoning are very important for understanding that ISD and Nash equilibrium aren't random unrelated concepts and for appreciating the motivation behind these concepts.

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The Nash Equilibrium provides a sharper prediction than the strongly dominated strategy ISD iterative deletion The concept of Nash equilibrium means t... View the full answer