Player and Strategies

Players are individuals or groups who make decisions. These decisions impact not only their outcomes but also those of other players. For example, in a market, players can be companies competing to sell products.

A strategy is a plan a player follows in a game. It outlines what actions the player will take in different situations, often based on what they think their opponents will do.

There are two main types of strategies, which are pure and mixed.

Pure strategies involve a player making a specific, predetermined choice every time.

For example, a company might adopt a pure strategy by deciding to always price its product below its competitors.

Mixed strategies, on the other hand, involve randomness in decision-making. They assign probabilities to various possible actions. This approach ensures that a player's actions are unpredictable to some extent, making it challenging for competitors to formulate counter strategies.

For example, a company might decide to lower its product prices with a 40% probability and maintain current prices with a 60% probability. This decision could be based on a lot of analysis.