This is because all the four payoffs become 25% and the average of four combinations can be derived as follows:Ġ.25(30%) + 0.25(10%) + 0.25(30%) + 0.25(10%) = 20% In such a case, the average hit of runs by batsman would be equal to 20%. For example, the bowler throws a spin ball and fastball with a 50-50 combination and the batsman predicts the 50-50 combination of the spin and fast ball. Therefore, it is preferred that bowler or batsman should adopt a mixed strategy in this case. In case, the bowler or the batsman uses a pure strategy, then any one of them may suffer a loss. However, when the expectation of the batsman is different from the type of ball he gets, the percentage of making runs would reduce to 10%. In Table-2, when the batsman’s expectation and the bowler’s ball type are same, then the percentage of making runs by batsman would be 30%. Therefore, strategies adopted by the bowler and the batsman would be mixed strategies, which are shown ion Table-2: However, if the bowler throws the ball differently every time, then it may make the batsman puzzled about the type of ball, he would be getting the next time. In such a case, the batsman may make more runs. For example, in cricket a bowler cannot throw the same type of ball every time because it makes the batsman aware about the type of ball. On the other hand, in a mixed strategy, players adopt different strategies to get the possible outcome. In such a case, an increase in prices is regarded as a pure strategy for organizations ABC and XYZ.
However, if only one of the organization increases the prices of its products, then it would incur losses. This is because if both of them increase the prices of their products, they would earn maximum profits. In the previously cited example (Table-1), the increase in the prices of organizations’ products is the best strategy for both of them. Therefore, it is regarded as the best strategy for every player of the game. In other words, a pure strategy is the one that provides maximum profit or the best outcome to players. In a pure strategy, players adopt a strategy that provides the best payoffs. Let us discuss these strategies in detail.
Therefore on the basis of outcome, the strategies of the game theory are classified as pure and mixed strategies, dominant and dominated strategies, minimax strategy, and maximin strategy. In the game theory, different players adopt different types of strategies on the basis of the outcome, which is obtained by adopting the strategy.įor instance, the player may adopt a single strategy every time as it provides him/her maximum outcome or he/she can adopt multiple strategies.Īpart from this, a player may also adopt a strategy that provides him/her minimum loss.
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