Game Theory | Game Theory | Matrix (Mathematics)

# Game Theory

 We know that competition is a major factor in modern

life. There are so many competitions like business competition, elections competitions, sport competition etc. In all these competitions persons have conflicting interest, and every body tries to maximize his gains and minimize loss. Game theory is a type of decision theory which is based on the choice of action. And choice of action is determined after considering the possible alternative available to the opponent.

decision makers who have different goals or objectives.It involves the players i. .e.

 Knowledge of alternatives. .  Outcome or Gain.  Choice of opponent.Essential Features of Game Theory  Finite number of competitors  Finite number of action.  Choice.

 Pay off matrix : In two person zero sum game the resulting game can be represented by a matrix called pay off matrix. Two person zero sum games : A game with two person in which the gain of one and loss of other. .  Strategy : strategy is a pre determine plan by which a player decides a course of action during a game. This is of two types. is a two person zero sum games.

(i) A pure strategy : A player choose a particular action. . The players knew it in advance. In mixed strategy the opponent can not be sure of the course of action to be taken on any particular occasion.  Saddle point : Saddle point is the position in pay off matrix is such an element in the payoff matrix which is minimum in its row and maximum in its column. (ii) Mixed strategy : Course of action are selected by a particular probability distribution. It is the predetermine course of action to be employed by the player.

Larger – smaller Property 3. Property 2 – same as property 1 but rowcolumn(change).If above the two property do not hold. Then the row with smaller element is dominated (eliminated) by the row having larger element. Property 1 – If the corresponding elements of a row are larger than some other row. Then we can dominate rows & column by the average of rest of rows & column. .Dominance Property By this property any of the problem can be reduce in to two by two game.

(v12+v21) Y2= v11-v21 /(v11+v22).(v12+v21) X1 = v22-v21 /(v11+v22).Formula for Odds method v= v11 v22 – v12 v21/(v11+v22).(v12+v21) .(v12+v21) X2= v11-v12 /(v11+v22).(v12+v21) Y1= v22-v12 /(v11+v22).

Network Analysis. How to use additional resources if project are to be completed before time. Effect of any delay in any activity. These techniques are very useful for planning. scheduling . 3. Generally we are always interested to know the important aspects of any project such as 1. 2. .PERT & CPM  Programme Evaluation and Review Techniques or PERT and critical Path Method or CPM are the network techniques or models which are widely used in project management. Expected completion time.

monitor and control large and complex projects. popular quantitative analysis techniques that helps managers to plan. Probability of completing the project in time. PERT and CPM are two. . schedule.4.

Terminology used  Event  Activity  Merge and Burst Events  Predecessor Activity  Successor Activity  Dummy Activity .

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