to the best response of Player 1 to Player 2 producing half monopoly output

是参与人2生产垄断产量一半的情况下的
and there are lots of brackets here.

这里有一大堆的括号
Can anyone see where this process is going?

有谁知道最后会怎样呢
It's going back to the Nash Equilibrium.

它会达到纳什均衡
Each of them is trying to play a best response for

每家公司都想采取预料的对方策略的
what they anticipate the other person's going to do.

最佳对策来制定产量
And in this game if they keep on doing that,

这个博弈如果他们一直这样做
it's going to drag them back to Nash Equilibrium.

最终会达到纳什均衡的状态
But I want to be careful here. This won't be true of all games.

但请注意并非所有博弈都会这样
But in this game, playing best response to each other,

但在这个博弈中互相采取最佳对策
figuring out that in fact the other guy is going to cheat on me,

预料到了对方会违约
or the other guy is anticipating that I'm going to cheat on him,

或者对方预料到了我会违约