Game theory 101

game theory made easy

game theory made easy

Basic Probability Rules

When we solve for mixed strategy Nash equilibria, we need to make sure that such mixtures are valid probability distributions. This lecture describes the basic probability properties we must check for.

*Takeaway Points:*

- All events in a probability distribution must occur with probability no less than 0 but no greater than 1.
- The sum of the probabilities of all events must equal 1.