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The concept of a policy is developed within the framework of the graph model for conflict resolution. More specifically, a policy is defined as an action plan from every possible state in a conflict for each player. A state forms what is called a policy stable state (PSS) if every player in a game does not prefer to move to another state given the other players' policies. The policies that cause a PSS constitute a policy equilibrium. Moreover, a refinement to PSS is suggested in order to take into account credible responses by players. Relationships with existing stability concepts in the graph model for conflict resolution are explored.