Game theory 101

game theory made easy

game theory made easy

Matching Pennies and Mixed Strategy Nash Equilibrium

- If the game is finite and there are no pure strategy Nash equilibrium, then there must be a mixed strategy Nash equilibrium.
- In a mixed strategy Nash equilibrium, at least one of the players plays multiple strategies with positive probability.
- This mixed strategy leaves the opponent indifferent to playing his pure strategies. (When there are more than two strategies, this gets a little more complicated--it may be the mixed strategy leaves the other player indifferent between playing two of his strategies and strictly worse off playing a third.)

Next lesson: The Mixed Strategy Algorithm.

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