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Chapter 6 - Game Theory
Chapter 6 - Game Theory
V = a11a22 –a12a21
a a –(-a21 + a12)
( 11+ 22)
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• From the above example
X= 4 –( -6) = 0.4
• (8+4) – (-7-6)
Y= 4- (-7) = 0.44
(8+) – (-7-6)
B1 B2
A1 4 3
A2 8 6
A3 5 4
For A row two dominates row 1 then we can
delete row 1, the matrix become
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B’s strategy
B1 B2
A’s strategy
A2 8 6
A3 5 4
Now for B column 2 dominates column 1 so we
have
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B’s strategy
B2
A’s strategy
A2 6
A3 4
Example
B’S STRATEGY
b1 b2 b3 b4
A’ STRATEGY a1 8 5 -7 9
a2 -6 6 4 -2
Here A has two strategies a1 and a2 which suppose he
plays with probabilities x and 1-x respectively.
When B choose to play b1 the expected pay off for A
shall be 14x – 6.
Similarly the expected pay off functions in respect of b2,
b3 and b4 can be derived as being 6-x, 4 – 11x ; and
11x -2 respectively. We can represent by graph by
plotting each pay off as a function of x.
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A is concerned with his least pay off when he plays
a particular strategy, which is represented by
the lowest of the four lines at that point, and
wishes to choose x so as to maximize this
minimum pay off.
This at k on the graph where the lower envelop
( represented by the shaded region), the lowest
of the lines at point, is the highest.
This point lies at the intersection of the line
representing strategies b1 and b2.the distance kl
=- 0.4 on the graph represents the game value V
and x =0.4 is the optimal strategy for A.
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Since the upper limit is on the intersection of b1 and b3 then
we calculate the value of x by using this two strategies
X= 4- (-6) = 0.4 y= 4-(-7) =0.44
B’S STRATEGY
b1 b2
A’ STRATEGY a1 -7 6
a2 7 -4
a3 -4 -2
a4 8 -6
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• every thing is similar with the abve example
but the only difference is B CONSIDE THE
UPPER ENVELOP AND THE OPTIMAL
STRATEGY FOR A IS 0.45, 0.54, 0, 0 AND FOR
B 0.41,0.58
• V = 0.58
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Solution of mxn games ( formulation
and solution as LPP
Example:
B’S STRATEGY
b1 b2 b3
A’ STRATEGY a1 8 9 3
a2 2 5 6
a3 4 1 7
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Solution
Formulate the LPP for A
Minimize 1/U = X1+ x2 + x3
Subject to x + 2x2 +4x3 >1
8 1