{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Topic12_Game Theory

24 mixed strategy in a mixed strategy game firms

Info iconThis preview shows pages 23–29. Sign up to view the full content.

View Full Document Right Arrow Icon
strategy.
Background image of page 23

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
24 Mixed Strategy In a mixed strategy ” game, firms assign some probability to different choices. In pure strategy, no Nash equilibrium may exist. However, Nash equilibrium always exists in mixed strategy. If there are multiple Nash equilibria in a pure strategy then there must be a Nash equilibrium in mixed strategy.
Background image of page 24
25 Mixed Strategy: Entry Game No Enter No Enter Firm B 0, 0 0, 1 -2, -2 1, 0 What is the Nash equilibrium of this game in pure strategy and mixed strategy?
Background image of page 25

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon