Pure Strategy Nash Equilibrium gives us the best response/action given what the other player is choosing. A mixed strategy tells us the associated probabilities of the actions.
Please note: We have 3 actions for player 1 and 2 for player 2 and while calculating mixed strategy we need only 2 strategies for each player. So we will eliminate one strategy/action of player 1. For Action A we see Player 1 gets more payoff for both actions of Player 2 as compared to B. In action A player 1 gets 4 and 1 respectively for M and R while if he chooses B he is getting 3 and 0 respectively for M and R, so he will always prefer action A over action B. But this is not the case with action C. So we will remove action B of player 1 to solve for mixed strategy.
The method of iterated elimination removes the dominated strategy.
Step by step
Solved in 3 steps
