## At A Glance

### Game Theory 101: Calculating Payoffs

Game Theory 101: The Complete Textbook on Amazon: http://www.amazon.com/gp/product/B005L7ANWC/ref=as_li_ss_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=B005L7ANWC&linkCode=as2&tag=gamthe101-20How do we calculate payoffs in mixed strategy Nash equilibria? The process has three simple steps:1) Find the probability each outcome occurs in equilibrium.2) For each outcome, multiply that probability by a particular player's payoff.3) Sum all of those numbers together.That's all it takes!It is always a good exercise to calculate payoffs in mixed strategy Nash equilibria and compare them to the payoffs for pure strategy Nash equilibria, or even non-equilibrium outcomes. Is the mixed strategy Nash equilibrium efficient? Are there pure strategy Nash equilibria that are better for both players? What about non-equilibrium outcomes?
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