Past exam of the mathematics course of the University of Cambridge 2013 iii Paper 38 5 a Solution Created 2026-10-03 Updated 2026-10-07
Let be the row payoff matrix and . For in the probability simplex , write and define the symmetric Nash gain mapThe 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 . Buta 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. ThereforeThis supplies the whole fixed-point construction and fixed-point-to-equilibrium argument, rather than assuming Nash's theorem as a black box.