The seminal result of Aumann &amp; Brandenburger 1995 provides an epistemic characterization of the Nash equilibrium in terms of mutual knowledge of strategy choices (and the structure of the game). See, also, Spohn (1982) for an early statement. Before stating the theorem, we discuss an example from Aumann &amp; Brandenburger (1995) that illustrates the key ideas. Consider the following coordination game: