What does mean in this game?
In this game, means that Player 2 chooses their pure strategy Right (R) with a probability of , and consequently chooses their pure strategy Left (L) with a probability of . At this specific mixture, Player 1 is completely indifferent between choosing R and L, receiving an expected payoff of regardless of their choice. Together with Player 1's equilibrium mix, this completes the mixed-strategy Nash equilibrium for the displayed game.
Conditions
- The game is the displayed 2x2 normal-form game.
- Player 2 mixes between R and L with probabilities and .
- The equilibrium concept is mixed-strategy Nash equilibrium.
Reasoning, step by step
- Identify the value of solved from the indifference equation.
- Interpret as the probability of Player 2 choosing strategy R.
- Calculate as the probability of Player 2 choosing strategy L.
- Verify that at this , Player 1's expected payoffs from R and L are equal.
- Conclude that this is Player 2's equilibrium mixing probability.
Example
The board shows . This means Player 2 plays R with probability and L with probability . Substituting back, Player 1's expected payoff from R is , and from L is , confirming Player 1 is indifferent.
Common misconceptions
- One may mistakenly attach to Player 2's left action or to the wrong column payoff. In this worked example, is the probability of Player 2 choosing R.
- Assuming that is Player 1's probability of choosing R. It is specifically Player 2's mixing probability.
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3:30 – 3:49Watch this moment ↗
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