Strict Dominance in Mixed Strategies

Sometimes no pure strategy strictly dominates another pure strategy but a mixture of two pure strategies dominates a third pure strategy. This lecture shows how to handle such a situation.

Takeaway Points

  1. If a mixture of two strategies strictly dominates a third strategy, you may eliminate the third strategy.
  2. Procede with iterated elimination of strictly dominated strategies as usual, if possible. (Note that there are no other strictly dominated strategies in the game in the video.)