The chain store paradox is an apparent game theory paradox describing the decisions a chain store might make, where a "deterrence strategy" appears optimal instead of the backward induction strategy of standard game theory reasoning.
The paradox was first put forth by Reinhard Selten in 1978.[1]
^Selten, Reinhard (1978-04-01). "The chain store paradox". Theory and Decision. 9 (2): 127–159. doi:10.1007/BF00131770. ISSN 1573-7187.
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