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GAME THEORY : SOLVING

2Xn OR mX2 GAMES


When is this used
• When either player A or player B has
only 2 strategies and the other
player has more than 2 strategies
• No saddle point is found
• 2 X n game means: player A has only
2 strategies and Player B has n
strategies
• m X 2 game means: player A has m
strategies and Player B has only 2
strategies
Algorithm for 2 X n game
• Step 1 : Reduce the payoff matrix by
applying dominance property, if it
exists
• Step 2: Let, x be the probability for
Player A taking alternative 1, then (1-
x) becomes the probability for
alternative 2. Derive the expected
gain function of player A
• Step 3 :For each gain function find
values when x = 0 & x=1
• Step 4 : plot gain. Keep x value on X
axis and gain on Y axis
• Step 5: Since player A is a maximin
player, find the highest intersection
point in the lower boundary of the
Algorithm for 2 X n game
(contd..)
• Step 6 : If the no. of lines passing
through the maximum point is only
two, from a 2 x 2 payoff matrix from
the original problem by retaining only
the columns corresponding to those
two lines and go to step 8, otherwise
go to step 7
• Step 7: If more than two lines are
passing through the maximum point,
identify any two lines with opposite
slopes passing through that point.
Then form 2x2 payoff matrix from the
original problem by retaining only the
columns corresponding to those two
lines which are having opposite slopes
• Step 8 :Solve the 2x2 game with
Solve the below 2 x 5 game
graphically

Player B
1 2 3 4
5
1 3 0 6 -1 7
Player A
2 -1 5 -2 2 1
Solving
Player B
1 2 3
4 5 Row minimum
1 3 0 6 -1 7 -1 (Maximin)
Player A -2
2 -1 5 -2 2 1
Column maximum 3 5 6
2 7

(Minimax)

Maximin = Minimax. No
saddle point
Checking for dominancy in
column (as only 2 rows are
present)
Player B
1 2 3
4 5
1 3 0 6 -1 7
Player A
2 -1 5 -2 2 1
Column dominancy:
Column 4 cell values are < column 2 values. So column 4 is dominant.
Delete column 2
Column dominancy:
Column 43 cell values are < column 5 values. So column 3 is dominant.
Delete column 5
After deleting column 2 & 5

Player B
1 3
4
1 3 6 -1
Player A
2 -1 -2 2
Now derive the gain
function
Player B
1 3
4
1 3 6 -1
Player A
2 -1 -2 2

B’s A’s expected payoff function


alternative
1 3x + (-1 * (1-x) ) = 3x-1+x = 4x-1
3 6x + (-2 * (1-x) ) = 6x -2 +2x = 8x-2
4 (-1 * x ) + (2* (1-x) ) = -1x +2 – 2x =
-3x +2
Now compute gain for x =
0 & x=1

B’s A’s A’s expected gain


alternativ expected
e payoff X=0 X=1
function
1 4x-1 -1 3
3 8x-2 -2 6
4 -3x +2 2 -1
Now plot the graph

Player A maximin player, shade the lowest boundary of the graph.


Intersection points are a,b,c & d. Highest point is c. Optimal
solution exists at c. Check the no. of lines passing thru c. 2 lines.
So consider the corresponding columns (B1 & B4) to make 2X2 matrix
Now we have got 2X2
matrix and can solve through
oddments
Player B
1
4
Oddments
1 3 -1 3
Player A 4
2 -1 2
Oddments 3
4
Calculating probability
P1= 3/7, P2 = 4/7, q1 = 3/7 & q2 = 4/7

Calculating value V = (3*3) + (-1*4) / (3+4) = (9-4)


/ 7 = 5 /7