Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2015/iii/paper-38/6/b/solution

In the first tableau the basis is , giving
The second basis is , giving and . This pair is not yet a Nash equilibrium: label is missing and label is duplicated.
Resolve the duplicate by bringing into the second tableau. Its column is , so the simplex ratio test gives
Variable leaves, giving
Now label is duplicated. Bring into the first tableau; its column is . The positive-entry ratios are and . Thus leaves, giving
All labels are now present and . Each unnormalized strategy has total mass , so the Lemke-Howson algorithm produces

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