One major drawback of Orthogonal Frequency Division Multiplexing (OFDM) is the large peak-to-average power-ratio (PAPR), which significantly degrades the power efficiency. In order to prevent nonlinear distortions the PAPR needs to be minimized to guarantee a linear dynamic range of the high power amplifier. Therefore, various reduction algorithms have been proposed. This paper investigates two probabilistic techniques, namely, selected mapping (SLM) and partial transmit sequence (PTS) for the purpose of reducing PAPR. From the analysis, it is inferred that PTS method provides a better PAPR reduction performance compared to SLM method. However, the transmitter and receiver complexity is very high. Thus in practical applications, a tradeoff needs to be made between good performance and auxiliary information. It is also found that SLM algorithm is more suitable if system can tolerate more redundant information; otherwise, PTS algorithm is more acceptable when complexity becomes the first considering factor.