Farsightedness (game theory)

In game theory, farsightness refers to players’ ability to consider the long-term consequences of their strategies, beyond immediate payoffs, often formalized as farsighted stability where players anticipate future moves and stable outcomes. In static games, players optimize payoffs based on current information, as in the Nash equilibrium, but farsightedness involves anticipating dynamic or repeated interactions, such as in coalition games like hedonic games where preferences shape long-term alliances.

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