Release Message:  Even those who know better play the so-called chain store game in an irrational manner. Authored by Reinhard Selten.

Description:  The chain store game is a simple game in extensive form which produces an inconsistency between game theoretical reasoning and plausible human behavior. Well-informed players must be expected to disobey game theoretical recommendations. If Player A follows the game theory payoff matrix to achieve the optimal payoff, he or she will have a lower payoff than with the "deterrence" strategy. This creates an apparent game theory paradox: game theory states that induction strategy should be optimal, but it looks like "deterrence strategy" is optimal instead. The "deterrence strategy" is not a Nash equilibrium: It relies on the non-credible threat of responding to IN with AGGRESSIVE. A rational player will not carry out a non-credible threat, but the paradox is that it nevertheless seems to benefit Player A to carry out the threat.