The only situation in which a mixed strategy equilibrium arises is one where the mixed strategies chosen leave both players indifferent between the payoffs they expect to receive from their
A) pure strategies
B) extensive strategies
C) mixed strategies

Question

Quizplus · Accepted Answer

In a mixed strategy equilibrium, players are choosing a combination of strategies with a certain probability, which means they are not playing their pure strategies with 100% probability. However, if a player has a dominant strategy (i.e. one strategy that always yields a better payoff than any other strategy, regardless of the choice of the other player), they will always choose that strategy, and there will be no need for a mixed strategy. Therefore, the only situation when a mixed strategy equilibrium arises is when there is no dominant strategy for either player, and they are indifferent between their pure strategies.

The Only Situation in Which a Mixed Strategy Equilibrium Arises