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Matching pennies Player 2 Head Tail Head 1 1 1 Player 1 1 1 1 Head is Player 1's best response to Player 2's strategy tail Tail is player 2's best response to Player 1s strategy Tail Tail is Player 1,'s best response to Player 2's strategy Head Head is Player 2's best response to Player 1's strategy Head Hence, NO Nash equilibriumMatching pennies -1 , 1 1 , -1 1 , -1 -1 , 1 2 ◼ Head is Player 1’s best response to Player 2’s strategy Tail ◼ Tail is Player 2’s best response to Player 1’s strategy Tail ◼ Tail is Player 1’s best response to Player 2’s strategy Head ◼ Head is Player 2’s best response to Player 1’s strategy Head ➢ Hence, NO Nash equilibrium Player 1 Player 2 Tail Head Tail Head
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