MATCHING PENNIES

A basic two-player game theory, which shows how rational decision-makers aims to maximize their payoff. The two players, the matcher and mismatcher, simultaneously place a penny on the table. A simplified version of rock, scissors, and paper, matching pennies has only two symbols: heads and tails. The matcher aims to seek matching pennies but the mismatches desires the pennies not to match. If both pennies are either heads or tails, the 1st player wins and keep the opponent’s penny. A zero-sum game, a player’s gain is the another player’s loss. Since both player have an equal probability of choosing heads or tails and do it randomly, there is no "Nash Equilibrium" in the game, meaning neither of them has the chance to apply a different strategy.

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