Epistemic conditions for nash equilibrium

Robert Aumann

pp. 863-894

in: Horacio Arló-Costa, Vincent F. Hendricks, Johan van Benthem (eds), Readings in formal epistemology, Berlin, Springer, 2016

Abstract

Game theoretic reasoning has been widely applied in economics in recent years. Undoubtedly, the most commonly used tool has been the strategic equilibrium of Nash (Ann Math 54:286–295, 1951), or one or another of its so-called "refinements." Though much effort has gone into developing these refinements, relatively little attention has been paid to a more basic question: Why consider Nash equilibrium in the first place?