This lesson introduces the best response method of finding pure strategy Nash equilibria.
- A player's best response is the strategy (or strategies) that generate the greatest payoff for him or her given what the other players are doing.
- In larger games, it may prove helpful to mark best responses with asterisks (*) in the payoff matrix.
- After doing this for all strategies, if all the payoffs in a particular cell have an asterisk next to them, then that strategy profile is a pure strategy Nash equilibrium.
Next lesson: Matching Pennies and Mixed Strategy Nash Equilibrium
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