Title

Finding mixed strategy Nash equilibria with decision trees

Abstract

This paper describes the usefulness of decision tree models for determining mixed strategy Nash equilibria in normal form games, particularly to undergraduate students. The approach is to construct a decision tree for each player, then solve the model via dynamic programming to determine the equations that must be satisfied at Nash equilibrium. This method not only provides a computational device that can be used to calculate the Nash equilibrium, but also serves as a visual aid that helps students understand the Nash equilibrium concept.

Document Type

Article

DOI

https://doi.org/10.1016/j.iree.2013.03.002

Keywords

decision tree, game theory, mixed strategy, nash equilibrium

Publication Date

2014

Journal Title

International Review of Economics Education

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