PERFECT
PREDICTION
NON-NASHIAN GAME THEORYA NEW PERSPECTIVE ON RATIONAL CHOICE

What if the future
could see you coming?

When our choices can be predicted, the rules of rationality change. Meet the Perfect Prediction Equilibrium.

PREDICTION
DECISION
+ A FUTURE CONSISTENT WITH ITS OWN PREDICTION
GAME THEORY, REIMAGINED.SCROLL TO EXPLORE ↓
Rationality✳Counterfactuals✳Artificial intelligence✳Quantum foundations

Same players.
Same incentives.
Different rationality.

“What if I had chosen differently?”

Every theory of rational choice needs an answer. In a Nash equilibrium, a player tests a different strategy while holding everyone else’s strategies fixed.

Perfect prediction asks a different question: if my choice had been different, would others have predicted that difference—and acted differently, too?

A decision and its anticipation become counterfactually dependent. The outcome must fit the reasoning that predicts it. [1]

THE NASHIAN VIEW
My choice ↗
your strategy stays fixed.

Find a best response to the others’ strategies.

THE PERFECT PREDICTION VIEW
My choice ⇄
your anticipation.

Find an outcome consistent with being predicted.

↳ Counterfactual dependence does not mean sending a signal into the past. It compares different possible histories.

A promise.
A prediction.
A different ending.

Alice can give Bob a loaf of bread. Bob can then pay her—or keep it without paying. Both want the best outcome for themselves.

Switch the reasoning. Watch the game change.

The promise gameAlice chooses no exchange with payoffs zero, zero, or gives bread. Bob then chooses to pay with payoffs one, one, or not pay with payoffs minus one, two. Highlighted branches indicate the selected equilibrium.Keep the breadGive the breadPayDon’t payAALICEBBOB0, 0NO EXCHANGE1, 1FAIR EXCHANGE−1, 2BROKEN PROMISEPREEMPTED
Equilibrium pathPayoffs: Alice, Bob · Higher is better
BACKWARD INDUCTION

The exchange
never happens.

  1. With bread already in hand, Bob prefers not paying: 2 is better than 1.
  2. Alice anticipates this. Keeping the bread gives her 0 instead of −1.
  3. She keeps it. Both receive 0.
ALICE0BOB0

The promise / assurance game from the supplied research. Nashian mode shows the subgame-perfect equilibrium; PPE mode assumes perfect prediction and strict preferences. [1] [4]

Different choices.
A shared prediction.

Perfect Prediction Equilibrium also applies when players choose without observing each other’s decision. Here, the row player chooses D, E or F; the column player chooses A, B or C.

Switch the reasoning to compare the Nash equilibrium with Perfect Prediction Equilibrium. In perfect-prediction mode, step through the elimination of outcomes that contradict rational payoff guarantees.

Column player’s strategy →
ROW ↓ABC
D6, 8Possible1, 2Possible4, 4Possible
E3, 1Possible0, 7Possible2, 3Possible
F7, 0Possible8, 5Possible5, 6Possible · Nash
Nash equilibriumPayoffs: row player, column player
STEP 0 / 2
THE ORIGINAL GAME

Nine possibilities.
No symmetry required.

Each cell is one joint outcome. Both players have strict preferences: no two outcomes give either player the same payoff. The reasoning compares guaranteed payoffs without holding the other player’s strategy fixed.

9possible outcomes
NASH EQUILIBRIUMF, C → (5, 6)

Stable against unilateral deviations, but not Pareto optimal: (6, 8) improves both players’ payoffs.

PERFECT PREDICTION EQUILIBRIUMD, A → (6, 8)

Pareto optimal. In this game, both players obtain a higher payoff than at Nash.

Exact game from Figure 11, page 29 (supplied revision v4) of Perfect Prediction in Normal Form by Ghislain Fourny. The paper calls this equilibrium PTE; we use the unified name PPE here. This example improves on Nash for both players; that relationship does not hold for every game.

A prediction that
holds itself together.

PPE is a fixed-point solution: predicting the outcome leads rational players to that very outcome. Forward induction eliminates futures that would contradict their own anticipation. [1]

∃

It exists.

For finite extensive-form games with perfect information and strict preferences, a PPE always exists.

1

It is unique.

Under those assumptions, the reasoning selects a single equilibrium path and outcome.

↗

It is Pareto optimal.

No alternative outcome can improve one player’s payoff without making another worse off.

One equilibrium. Two historical names. +

PPE and PTE denote the same unified equilibrium concept. The original sequential-game work used “Perfect Prediction Equilibrium”; the normal-form work used “Perfectly Transparent Equilibrium,” before their unification became clear. In normal form, the reasoning repeatedly eliminates outcomes below players’ current maximin guarantees, under rationality and knowledge of strategies in all possible worlds.

The guarantees depend on the game class. For finite sequential games with perfect information and strict preferences, existence, uniqueness and Pareto optimality are guaranteed. For the finite normal-form games with pure strategies and no payoff ties studied in the paper, the equilibrium is unique and Pareto optimal when it exists; existence is not guaranteed. On symmetric normal-form games, it coincides with Hofstadter’s superrationality. [1] [2]

One idea.
Two extraordinary horizons.

What changes when independence is an assumption
we can question?

01 — ARTIFICIAL INTELLIGENCE & AI SAFETY

When agents can
model each other.

Prediction sits at the heart of the connection to AI. The normal-form paper points to machine learning and data analysis as motivation for questioning independent decisions. [2]

For artificial agents that inspect, simulate or predict one another, an intriguing question follows: should a counterfactual change in one policy leave the other policy’s response fixed?

This perspective is relevant to AI safety: how can predictive agents make credible commitments, cooperate with humans, and avoid incentives for harmful behavior?

FROM ASIMOV TO AI SAFETY

PPE can be seen as a proposed game-theoretic implementation of Isaac Asimov’s Three Laws of Robotics, provided their priorities are explicitly encoded in the model: protect humans first, follow human instructions consistent with that protection, and preserve the robot subject to both.

This interpretation connects equilibrium reasoning with safety-oriented design. PPE itself supplies no ethical priorities: the laws must be built into the model, and real-world safety requires more than an equilibrium guarantee.

Perfect prediction is an idealization. Applying this approach to imperfect AI systems remains an open research direction.

Explore the theoretical foundation ↗
MUTUAL PREDICTION / CONCEPTUAL ILLUSTRATION
SPACELIKE SEPARATION / CONCEPTUAL ILLUSTRATION
02 — QUANTUM FOUNDATIONS

Could nature
play a different game?

Spacetime games place choices inside Minkowski spacetime. Light cones determine which information can reach a decision—connecting game structures to relativistic causality. [3]

Baczyk and Fourny model measurement settings and outcomes as decisions by experimentalists and nature. Within this framework, they argue that Nashian free-choice assumptions conflict with Bell-inequality violations, and propose non-Nashian reasoning instead. [4]

AN OPEN QUESTION IN PHYSICS

The proposal accommodates counterfactual dependence and contextuality. It leaves nature’s precise payoffs open; it is a research framework, not a completed derivation of quantum predictions.

Read the quantum foundations paper ↗
THE QUESTION THAT CHANGES THE GAME

“If I had chosen differently,
you would have seen it coming.”

THE INTUITION BEHIND PERFECT PREDICTION

Ideas deserve
a closer look.

Explore the original arguments, formal definitions and proofs—from the early work on projected equilibrium and Newcomb’s paradox to the four manuscripts behind this introduction.

[1]
THE FOUNDATION · EXTENSIVE FORM

Perfect Prediction Equilibrium

Ghislain Fourny, Stéphane Reiche & Jean-Pierre Dupuy

Accepted manuscript · Book chapter, 2018
[2]
THE EXTENSION · NORMAL FORM

Perfect Prediction in Normal Form

Superrational Thinking Extended to Non-Symmetric Games · Ghislain Fourny

Journal of Mathematical Psychology, 2020
[3]
THE BRIDGE · RELATIVISTIC CAUSALITY

Games in Minkowski Spacetime

Ghislain Fourny

Preprint, 2020
[4]
THE FRONTIER · QUANTUM FOUNDATIONS

Nashian game theory is incompatible with quantum physics

Michal Baczyk & Ghislain Fourny

Quantum Studies: Mathematics and Foundations, 2023
[5]
THE PHILOSOPHICAL ROOTS · PROJECTED EQUILIBRIUM

Philosophical foundations of a new concept of equilibrium in the social sciences: Projected equilibrium

Jean-Pierre Dupuy

Philosophical Studies 100(3), 323–345 · 2000
[6]
THE EARLY FOUNDATIONS · NEWCOMB’S PARADOX

Two temporalities, two rationalities: a new look at Newcomb’s paradox

Jean-Pierre Dupuy

Economics and Cognitive Science · Book chapter, pp. 191–220 · 1992
TAKE THE NEXT STEP

From understanding to exploration.

Explore the research engine ↗

Stay curious.

Does this mean Nash equilibrium is wrong? +

Nash equilibrium answers a well-defined question under a particular counterfactual assumption: hold the others’ strategies fixed. PPE explores a different assumption. Which model is useful depends on the agents and situation being studied.

Is perfect prediction realistic? +

It is an idealization, like other strong knowledge assumptions in game theory. The papers establish what follows under that idealization. Partial predictability and imperfect models require further analysis.

Does cooperation require altruism? +

No. The model’s players still pursue their own payoffs. Cooperation can emerge because a different choice would have been anticipated differently. The promise-game example is played once and needs no repeated-game reward or punishment.

Does this prove a new theory of quantum mechanics? +

The quantum paper proposes a decision-theoretic framework and argues for revisiting free-choice assumptions. It does not specify a complete physical payoff model or derive all quantum statistics. Its connection to quantum foundations is an invitation to further research.