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Matching Pennies

Also called Zero-sum game with mixed strategy

Where one side's gain is exactly the other's loss, the only stable play is to be deliberately unpredictable.

Von Neumann's 1944 example. It is the cleanest case for randomisation: any detectable pattern is exploitable, so the optimal strategy is to be genuinely unpredictable rather than clever.

In practice

  • A goalkeeper who always dives right is beaten; one who dives randomly is not, and the randomness is the strategy.
  • A tax authority that audits on a predictable rule is gamed; one that audits partly at random is not.
Further reading
Wikipedia
Subject
Games & Strategic Interaction
Essay
The recurring shapes of conflict and cooperation

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