what are the limitations of nash equilibrium 
the primary limitation of nash equilibrium is that it requires an individual to know their opponent s strategy a nash equilibrium can only occur if a player chooses to remain with their current strategy if they know their opponent s strategy in most cases such as in war whether that be a military war or a bidding war an individual rarely knows the opponent s strategy or what they want the outcome to be unlike dominant strategy the nash equilibrium doesn t always lead to the most optimal outcome it just means that an individual chooses the best strategy based on the information they have furthermore in multiple games played with the same opponents the nash equilibrium does not take into consideration past behavior which often predicts future behavior the bottom linethe nash equilibrium is a component of game theory that asserts that a player will continue with their chosen strategy while knowing their opponent s strategy as they have no incentive to change course the nash equilibrium can be applied in a variety of real life situations to determine what the best payoff in a scenario would be based on your decisions as well as knowledge of your opponent s decisions 