This lesson shows the algorithm we use to solve for mixed strategy Nash equilibrium in simple 2×2 games.
- If there is a mixed strategy Nash equilibrium, it usually is not immediately obvious. (Do not let matching pennies lull you into believing this is easy!)
- However, there is a straightforward algorithm that lets you calculate mixed strategy Nash equilibria. We will employ it frequently.
- The algorithm involves setting the payoffs for a player’s two pure strategies equal to each other and solving for the mixed strategy of the other player that makes this equation true.