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Microeconomics
Game Theory: Basic Solutions
Joint Probability Distribution
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Cards (6)
Both mixing strategies =
any outcome is possible
Mixed strategies aren't symmetric =
expected payoffs are different
We need to find a profile of mixed strategies =
which are the best response analysis of the players
In a best response analysis =
a player will mix only if they are indifferent; otherwise, a mixed strategy can never be a best response
If the two choices were such that one choice gives a higher expected payoff =
the player will play the choice which gives higher payoff, and never mix
Theorem =
nash equilibrium in mixed strategies always exists