I spent hundreds of thousand of dollars & many years of my life studying Game Theory in Universities, and you want me to explain that to you in a teeny forum post, for free?!
Not going to happen.
Not everything in life can be ELI5ed, real knowledge takes time and money. Especially money.
Lucky you! I had to learn Game Theory via playing Tit for Tat in the backseat of a Nash with a dude others claimed they couldn't see. Yep, I had the game mastered till that fuckin' Axelrod came along and introduced all kinds of weird shit I couldn't get my head wrapped around. Looking over my shoulder, I see my dude friend nodding in agreement as I pen this post.