The Nash equilibrium is the traditional solution concept in game theory. It depends on the cognitive abilities of the players. It is assumed that players are aware of the structure of the game and consciously try to predict the moves of their opponents and to maximize their own payoffs. In addition, it is presumed that all the players know this (see common knowledge). These assumptions are then used to explain why players choose Nash equilibrium strategies.
The Nash equilibrium is the traditional solution concept in game theory. It depends on the cognitive abilities of the players. It is assumed that players are a.ware of the structure of the game and consciously try to predict the moves of their opponents and to maximize their own payoffs. In addition it is presume,d that all the players know this (see common knowledge). These assumptions are then used to explain why players choose Nash equilibrium strategies