25. Mixed strategy A mixed strategy game exists when there is no saddle point. Each player will then optimize their expected gain by determining the percent of time to use each strategy.
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29. Equilibrium Strategic equilibrium refers to the “solution” of a game: A state which a game will tend towards The Prisoner’s Dilemma has one (unique Nash) equilibrium (rat out-rat out) No one player can unilaterally change his strategy for a better outcome: ”I can do no better, given that the other player keeps doing what he is doing.”
30. Nash’s Equilibrium A Nash equilibrium is a situation in which none of them have dominant Strategy and each player makes his or her best response (S, T) is Nash equilibrium if S is the best strategy to T and T is the best strategy to S John Nash shared the 1994 Nobel prize in Economics for developing this idea! This equilibrium occurs when each player’s strategy is optimal, knowing the strategy's of the other players.
31. Coordination games coordination games are a class of games with multiple pure strategy Nash equilibria in which players choose the same or corresponding strategies. situations in which all parties can realize mutual gains, but only by making mutually consistent decisions
32. Examples Models the strategic conflict when two players have to choose their priorities Pure coordination game
33. Exp2 –Stag hunt A situation in which both players (hunters) can benefit if they cooperate (hunting a stag). However, cooperation might fail, because each hunter has an alternative which is safer because it does not require cooperation to succeed (hunting a hare).
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