AGT: mixed strategies

What does a mixed strategy randomize?

• Conditions of the game

• Action sequence

• Action selection

• Nash equalibria

What is a pure strategy Nash equilibrium?

• A Nash equilibrium where players only select one action (even if more are available)

• A mixed-strategy Nash equilibrium, where one action has a probability of 1

• A mixed-strategy Nash equilibrium, where one action has a probability of 0

• A Nash equilibrium of weakly dominated strategies

Models with a mixed-strategy Nash equilibrium should not be used in a game that has...

• Have more than two players

• Have more than two actions per player

• Ordinal values

• Cardina values

How can finding a mixed-strategy equilibrium help you?

• By suggesting how frequently you should choose different available strategies

• By providing suggestions on the most useful pure strategy from those available

• By providing information needed to adjust your actions to move closer to a best response

• By providing information on the cost/payoff functions of your opponent

In which cases would you need to use a mixed strategy?

• Playing chess

• Playing rock, paper, scissors

• Playing in a Cournot's competition game

• Playing in a Bertrand's competition game