### 1.9. Understanding Mixed Strategies and Nash Equilibrium in Normal-Form Games**Question:**What is a mixed strategy in a normal-form game? What is a mixed-strategy Nash equilibrium in a normal-form game?#### Explanation:In game theory, specifically in the context of normal-form games, a **mixed strategy** is a scenario where a player chooses to randomize over possible moves, assigning a specific probability to each move. This is in contrast to a pure strategy, where a player consistently makes the same choice every time.A **mixed-strategy Nash equilibrium** occurs when each player in the game selects their mixed strategy such that no player can gain additional advantage by independently changing their current strategy. The strategies are in balance considering the probabilities assigned, and any unilateral deviation by a player would result in a lower payoff.---Note: The text presented does not reference any graphs or diagrams.

Answered: 1.9. What is a mixed strategy in a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A Nash equilibrium refers to a scenario where in the economic actors interacts with one another each on the selection of the best strategy among the available strategies that all the other actors have chosen. The mixed strategy refers to an assignment of probability to all choices in the set of strategy when the player would not be choosing one definite action, and instead selects according to a distribution of probability over all his actions.

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