Question

Can you please explain how to calculate mixed strategy of a game using probabilities to derive the expected output of each player?

Answer 1

ANSWER:

To compute the payoffs in mixed strategy Nash equilibria, do the below mentioned steps:

-- The mixed strategy Nash equilibrium should be solved. Note the probabilities of playing each strategy next to such strategies.

-- For each cell, the probability player 1 plays his corresponding strategy should be multiplied by the probability player 2 plays to the corresponding strategy. Write this in the cell.

-- Select the player whose payoff need to be computed. Multiply each probability in each cell by the payoff in that cell.

-- Add all these numbers and it will provide the expected payoff in the mixed strategy Nash equilibrium for that player.