juniorGame Theory
What is payoff matrix representation in Game Theory?
Updated May 16, 2026
Short answer
A payoff matrix represents outcomes of strategies chosen by players in a game.
Deep explanation
It is a tabular representation where rows and columns correspond to strategies of players, and each cell shows payoffs. It helps analyze equilibrium and best responses.
Real-world example
Used in modeling pricing competition between firms.
Common mistakes
- Ignoring that payoffs depend on both players' actions.
Follow-up questions
- What is best response?
- Can payoff matrices be extended beyond 2 players?