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Chap 15
Chap 15
Theory of Games
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(i)
(ii)
(iii)
(iv)
If the value of game v = 0, it is called a fair game. If v > 0, the game favours
A, and if v < 0, it favours B.
If a game has a saddle point, the strategies of the players are called pure
strategies.
A game may have more than one saddle point. It implies the availability of
more than one optimal strategy for one/both of the players.
A game may have no saddle point.
b2
As
a1
a11
a12
Strategy
a2
a21
a22
Now, let x and 1 x be the respective probabilities that A plays a1 and a2, y
and 1 y be the respective probabilities that B plays b1 and b2, and v be the
value of game. To obtain the values of x and y such that they yield unique
value of v, the following formulae may be used.
a22 a21
x = --------------------------(a11 + a22) (a21 + a12)
a22 a12
y = ---------------------------(a11 + a22) (a21 + a12)
Once the values of x and y are obtained, the mixed strategy for each of the
players can be determined. To illustrate, if x = 8/11 and y = 5/11, the optimal
strategy for A would be stated as 8/11 and 3/11 (for a1 and a2), so that he
would play the two strategies in the ratio 8:3; while B would play b1 and b2 in
the ratio 5:6.
(b) Solution to 2 n and m 2 Games
When one of the players has two
strategies available to him, the problem can be handled graphically, where the
expected pay-off functions are plotted on a graph. This is done to reduce the
problem to a 2 2 size and then solve it analytically as given earlier. Consider
a game where A has two strategies a1 and a2, and B has four strategies b1, b2,
b3 and b4. Suppose pay-offs for b1 are 8 and 5, respectively, against a1 and
a2. To plot it, calculate the expected pay-off E = 8x + (5 )(1 x), which
simplifies to 13x 5. Since x can assume minimum value of 0 and a maximum
of 1, we have, E = 5, for x = 0 and E = 8 for x = 1. Now, on a graph, we take
a scale from 0 to 1 on x-axis while we represent pay-off on y-axis. For the
calculation under consideration, plot 5 on y-axis at x = 0 and plot 8 at x = 1.
Now, join the two points. In a similar manner, all the strategies for B are
plotted. Next, the graph is viewed from below and lower envelope is
considered and the highest attainable point is located (it is viewed from above
if B is given to have two strategies available and the lowest point in the upper
envelope is considered). Whichever pair of strategies determines that point,
they are considered for B. the two strategies for A and two for B makes the
problem a 2 2 one to be solved accordingly.
An m n game can be formulated and solved
(c) Solution to m n Games
as an LPP and the optimal strategies for both the players are determined using
the concepts of duality. To illustrate the formulation, let both the players have
3 strategies each; for player A : a1, a2, and a3 which he plays with probabilities
x1, x2, and x3 respectively, and for player B : b1, b2, and b3 which he plays with
probabilities y1, y2, and y3 respectively. Let U (or V) denote the game value. If
all entries in the pay-off matrix are non-negative, we have,
From As point of view:
1/U = X1 + X2 + X3
Minimise
Subject to
X1, X2, X3 0
Y 1, Y 2, Y 3 0
where Xi = xi /Ui
where Yi = yi /Vi
Notes:
(i)
The problems can be solved using simplex algorithm and from the values of Xi
and Yi, we can obtain xis and yis.
(ii)
(iii)
It would suffice to solve one of the problems and read the solution to the other
from it, since they are dual of each other.
In case some pay-off /s are negative, a constant k should be added in each of
the pay-offs such that none of them remains negative. Once the game value, U
or V, is obtained, the constant value would be subtracted there from.
(iii)
After all possible deletions (i) if only one value remains, it is the saddle point; and (ii) if
the game is reduced to a 2 2, then solve by analytical method. Otherwise, the game
may be formulated and solved as an LPP.