User:Jonathon Hides/sandbox

Being bold is important on wikipedia

A perfect-subgame equilibrium occurs when there are Nash equilibria in every subgame, that players have no incentive to deviate from. The theory relies on the assumption that players are rational and utility-maximizing.

Expectancy theory.

History
Results from testing the ultimatum game challenged the traditional economic principles that consumers are rational and utility-maximizing. This started a variety of research into the psychology of humans and bounded rationality