Description
This video shows how mixed strategies work. By using mixed strategies, we will be able to understand how to solve the game known as battle of the sexes.
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Mixed strategies need to be analysed in game theory when there are many possible equilibria, which is especially the case for coordination games. The battle of the sexes is a common example of a coordination game where two Nash equilibria appear, meaning that no real equilibrium can be reached.
In the battle of the sexes, a couple argues over what to do over the weekend. In this game, knowing your opponent’s strategy will not help you decide on your own course of action, and there is a chance an equilibrium may not be reached. The way to solve this dilemma is through the use of mixed strategies, in which we look at the probability of our opponent choosing one or the other strategy and balance our pay off against it.
Learn more by reading the dictionary entry.
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