Comments by "" (@PunmasterSTP) on "Game Theory 101 (#34): Rock Paper Scissors" video.

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  4.  @chrisnewtownnsw  I think I see what you are saying. If it's alright, let's go back to <1/3, 1/3, 1/3> for your opponent's strategy and then <1/3, 0, 2/3> for yours (i.e. 1/3 rock and 2/3 scissors). We can calculate the probabilities of each each different game occurring. Using the law of multiplication, we'd expect the game <rock, rock> (your opponent plays rock and you play rock) to happen 1/3 * 1/3 = 1/9 of the time. That's a draw, so it doesn't count. The game <rock, paper> occurs none of the time, since you never play paper. The game <rock, scissors> happens 1/3 * 2/3 = 2/9 of the time. We can start adding up your expected returns, and from that round it would be 2/9 * (-1) = -2/9, since you are losing $1 (or whatever units) 2/9 of the time. Does that sound alright? Next, let's think about your opponent playing paper. <paper, rock> happens 1/3 * 1/3 = 1/9 of the time, and you lose, so you pick up a 1/9 * (-1) = -1/9 from there. <paper, paper> doesn't happen, but <paper, scissors> happens 1/3 * 2/3 = 2/9 of the time. From that, you'd get 2/9 * (1) = +2/9, since you are winning. Lastly, <scissors, rock> happens 1/3 * 1/3 of the time, so you win 1/9 * (1) = 1/9. <scissors, paper> never happens and <scissors, scissors> happens 1/3 * 2/3 = 2/9 of the time, but it's a draw. Totaling everything up, your expected earnings are (-2/9) + (-1/9) + (2/9) + 1/9 = 0. As before, both players playing <1/3, 1/3, 1/3> represents a Nash equilibrium, so no one person can become better off by changing their strategy.
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