| 21. | This makes the rationalizability concept a generalization of Nash equilibrium concept.
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| 22. | The Nash equilibrium may sometimes appear non-rational in a third-person perspective.
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| 23. | The most commonly used solution concepts are equilibrium concepts, most famously Nash equilibrium.
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| 24. | But it is not as if the Nash equilibrium never works.
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| 25. | The Nash equilibrium is the traditional solution concept in game theory.
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| 26. | The sole Nash equilibrium is shown in the right hand graph.
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| 27. | The only Nash equilibrium of this game is to choose Defect in each period.
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| 28. | This deviation to a selfish Nash equilibrium strategy is explained by the Chainstore paradox.
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| 29. | That is because the Nash equilibrium of such a system is not necessarily optimal.
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| 30. | Is there a way to find a Nash equilibrium for a game like this?
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