Economics Game Theory Questions
In game theory, mixed strategy equilibrium refers to a situation where players in a game choose their strategies randomly, rather than deterministically. This occurs when players are indifferent between multiple pure strategies and cannot predict the actions of their opponents. In a mixed strategy equilibrium, each player's strategy is chosen in such a way that no player can improve their outcome by unilaterally deviating from their chosen strategy. This equilibrium concept allows for a more realistic representation of decision-making in situations where players have uncertainty about their opponents' actions.