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  2. Best response - Wikipedia

    en.wikipedia.org/wiki/Best_response

    In game theory, the best response is the strategy (or strategies) which produces the most favorable outcome for a player, taking other players' strategies as given. [1] The concept of a best response is central to John Nash's best-known contribution, the Nash equilibrium, the point at which each player in a game has selected the best response (or one of the best responses) to the other players ...

  3. Nash equilibrium - Wikipedia

    en.wikipedia.org/wiki/Nash_equilibrium

    For instance if a player prefers "Yes", then that set of strategies is not a Nash equilibrium. But if every player prefers not to switch (or is indifferent between switching and not) then the strategy profile is a Nash equilibrium. Thus, each strategy in a Nash equilibrium is a best response to the other players' strategies in that equilibrium ...

  4. Game theory - Wikipedia

    en.wikipedia.org/wiki/Game_theory

    A set of strategies is a Nash equilibrium if each represents a best response to the other strategies. If all the players are playing the strategies in a Nash equilibrium, they have no unilateral incentive to deviate, since their strategy is the best they can do given what others are doing. [105] [106]

  5. Bertrand competition - Wikipedia

    en.wikipedia.org/wiki/Bertrand_competition

    The Nash Equilibrium in the Bertrand model is the mutual best response; an equilibrium where neither firm has an incentive to deviate from it. As illustrated in the Diagram 2, the Bertrand-Nash equilibrium occurs when the best response function for both firm's intersects at the point, where = =.

  6. Strong Nash equilibrium - Wikipedia

    en.wikipedia.org/wiki/Strong_Nash_equilibrium

    If x is not an SNE, the condition requires that one can move to a different strategy-profile which is a social-welfare-best-response for all coalitions simultaneously. For example, consider a game with two players, with strategy spaces [1/3, 2] and [3/4, 2], which are clearly compact and convex. The utility functions are: u1(x) = - x1 2 + x2 + 1

  7. Matching pennies - Wikipedia

    en.wikipedia.org/wiki/Matching_pennies

    Matching pennies is used primarily to illustrate the concept of mixed strategies and a mixed strategy Nash equilibrium. [1] This game has no pure strategy Nash equilibrium since there is no pure strategy (heads or tails) that is a best response to a best response. In other words, there is no pair of pure strategies such that neither player ...

  8. Subgame perfect equilibrium - Wikipedia

    en.wikipedia.org/wiki/Subgame_perfect_equilibrium

    The Nash equilibrium (UA, X) is subgame perfect because it incorporates the subgame Nash equilibrium (A, X) as part of its strategy. [3] To solve this game, first find the Nash Equilibria by mutual best response of Subgame 1. Then use backwards induction and plug in (A,X) → (3,4) so that (3,4) become the payoffs for Subgame 2. [3]

  9. Chicken (game) - Wikipedia

    en.wikipedia.org/wiki/Chicken_(game)

    The best response mappings agree (i.e., cross) at three points. The first two Nash equilibria are in the top left and bottom right corners, where one player chooses one strategy, the other player chooses the opposite strategy. The third Nash equilibrium is a mixed strategy which lies along the diagonal from the bottom left to top right corners.

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