Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2013/iii/paper-38/5/a/solution

Let be the row payoff matrix and . For in the probability simplex , write and define the symmetric Nash gain map
The map is a continuous function, has nonnegative coordinates, and sums to one. The Brouwer fixed-point theorem states that every continuous self-map of a nonempty finite-dimensional compact convex set has a fixed point. Apply it to , and let .
Set . The fixed-point equation gives . If , every positive has strictly positive gain, so . But
a contradiction. Thus and every pure payoff is at most . Since their -weighted average equals , every supported action attains that maximum. Consequently is a best response to itself.
The column player's payoff vector against is , so exactly the same inequalities establish its best response. Therefore
This supplies the whole fixed-point construction and fixed-point-to-equilibrium argument, rather than assuming Nash's theorem as a black box.

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