ECON 159 - Lecture 9 - Mixed Strategies in Theory and Tennis

Lecture 9 - Mixed Strategies in Theory and Tennis

Overview

We continue our discussion of mixed strategies. First we discuss the payoff to a mixed strategy, pointing out that it must be a weighed average of the payoffs to the pure strategies used in the mix. We note a consequence of this: if a mixed strategy is a best response, then all the pure strategies in the mix must themselves be best responses and hence indifferent. We use this idea to find mixed-strategy Nash equilibria in a game within a game of tennis.

Resources

Assignment

Strategies and Games: Theory And Practice. (Dutta): Chapters 8-9

Strategy: An Introduction to Game Theory. (Watson): Chapter 11

Thinking Strategically. (Dixit and Nalebuff): Chapter 7

Problem Set 4

Course Media

Transcript

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Audio

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