Title of Lecture

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  Expected Value
 Oddment Method
 Equalizing Expectation Method
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 Finding the saddle points in the following games.
Draw the movement diagrams for the games.

Colin
A B C
Rose A -2 0 4
B 2 1 3
C 3 -1 -2

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 Soln :

Colin Row
min
A B C

Rose A -2 0 4 -2 Colin
B 2 1 3 maxi A B C
1 min
C 3 -1 -2 -2 Rose A

Col 3 4 B
1
max C
mini
max

Saddle point at Rose B and Colin B

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 A plan which involves playing a mixture of strategies
according to certain fixed probabilities

The strategy for a players which optimises his/her payoff

irrespective of the strategy of his/her competitor.

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Expected Value
► The expected value of getting payoffs 𝑎1 , 𝑎2 , … , 𝑎𝑛 with respective
probabilities 𝑝1 , 𝑝2 , … , 𝑝𝑘 is 𝑝1 𝑎1 + 𝑝2 𝑎2 + ⋯ + 𝑝𝑘 𝑎𝑘 .

Expected Value Principle

If you know your opponent is playing a mixed strategy and will continue
to play it regardless of what you do, you should play your strategy which
has the largest expected value.

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 Methods of
Mixed Strategies Oddment Method
(2 x 2 game
without saddle
point)

Graphical Equalizing
Method (2xn Expectation
or mx2 Method
game) (n x n game)

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 Oddment Method

To find the "oddments" with which Rose should

play Rose A and Rose B, take the absolute values
of the differences of the row entries, and
interchange them. To find Colin's oddments, do
the same with the differences of the column
entries.

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 Example

Colin row Rose Rose

Difference Oddments probabilities
A B
Rose A 2 -3
2 - (-3) = 5 3 3/8
0-3=-3 5 5/8
B 0 3

Column
differences 2–0=2 -3–3=-6

Colin oddments 6 2
Colin probabilities 6/8 2/8

Rose plays the mixed strategy 3/8 A, 5/8 B .

Colin plays the mixed strategy 3/4 A, 1/4B .
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 3 1
Colin plays the mixed strategy ( 𝐴, 𝐵 )
4 4
Rose’s expected payoff,
3 1 3
Rose A : . 2 + . −3 =
4 4 4
3 1 3
Rose B : . 0 + . 3 =
4 4 4

3 5
Rose plays the mixed strategy ( 𝐴, 𝐵 )
8 8
Colin’s expected payoff,
3 5 3
Colin A : .2 + . 0 =
8 8 4
3 5 3
Colin B : −3 + . 3 =
8 8 4
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 3
∴The value of game is
4
3 5
Rose’s optimal strategy 𝐴, 𝐵
8 8
3 1
Colin’s optimal strategy 𝐴, 𝐵
4 4

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 Colin
Equalizing Expectation
A B
Method
Rose A 2 -3
B 0 3

Suppose that Colin plays a mixed strategy with probabilities 𝑥

for A, 1 − 𝑥 for B, where 𝑥 is some number between 0 and 1.
Calculate Rose’s expected values for Rose A and Rose B.
• 𝑅𝑜𝑠𝑒 𝐴 ∶ 𝑥 2 + 1 − 𝑥 −3 = 5𝑥 − 3
• 𝑅𝑜𝑠𝑒 𝐵 ∶ 𝑥 0 + 1 − 𝑥 3 = 3 − 3𝑥
These two expected values are the same : 5𝑥 − 3 = 3 − 3𝑥.
3 1
Therefore 𝑥 = and 1 − 𝑥 =
4 4
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 𝟑 𝟏
Colin plays the mixed strategy 𝑨 , 𝑩.
𝟒 𝟒

𝟑 𝟓
Rose plays the mixed strategy 𝑨, 𝑩.
𝟖 𝟖

The value of game will be found.

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 Check for
the saddle
points

To find
a 4x4
solution
Reduce the
If that does not work, try to size of the
find a 4x4 solution by the game by
method of equalizing dominance
expectations , which involves
solving two set of three
equations in three unknowns.

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 Assignment
Solve the following game.

Colin

A B C

A 3 0 1
Rose
B -1 2 2

C 1 0 -1

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Summary of Lecture
Strategy

Pure Strategy Mixed strategy

nxn (equalizing
2x2 (oddment ) 2xn or mx2 (graphic)
expectation )

Check for a saddle point and dominance strategy.

 If that does not work, try to find mixed strategy.
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  Two-Person
 Graphic Method

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