Game Theory

Hadi Sutanto Saragi S.T., M.Eng.

Two person zero sum
linear programming

A B
 Game Theory
B
H T

A H
1 -1

Pay off matrix for A.

T -1 1

H : Head
T : Tail
 Game Theory
B Q Q2
1

H T
A
P1 H Whenever A lose is B gain
1 -1
Whenever B lose is A gain
Pay off matrix for A.
P2 T -1 1

H : Head
T : Tail
Q : Probability of B
P : Probability of A
 Game Theory
B QMini max
Q2
1

H T
A
P1 H Whenever A lose is B gain
1 -1
Maxi min Whenever B lose is A gain

P2 T -1 1

H : Head
T : Tail
Q : Probability of B
P : Probability of A
 Saddle point
B
Q1 Q2 Q3

A P1 3 2 -1 Not feasible for A

P2 4 3 1

Saddle point
Not feasible for B
Not feasible for B
 Saddle point
B
Q1 Q2 Q3

A P1 3 2 -1 -1 Row min

P2 4 3 1 1

Saddle point

Colm max
4 3 1
 Game Theory
B
H T

A H
1 -1

Pay off matrix for A.

T -1 1

Colm max

H : Head
T : Tail
 Game Theory
B Q Q2
1

H T
A
P1 H Whenever A lose is B gain
3 -2
Whenever B lose is A gain
Pay off matrix for A.
P2 T 1 2
3P1 + P2
-2P1 + 2P2
H : Head
T : Tail
Q : Probability of B
P : Probability of A
 Game Theory
B Q Q2
1

H T
A
P1 H Whenever A lose is B gain
3 -2
Whenever B lose is A gain
Pay off matrix for A.
P2 T 1 2 Max μ
µ ≤ 3P1 + P2
µ ≤ -2P1 + 2P2
H : Head
T : Tail
Q : Probability of B
P : Probability of A
 Game Theory
B Q Q2
1

H T
A
P1 H Whenever A lose is B gain
3 -2
Whenever B lose is A gain
Pay off matrix for A.
P2 T 1 2 Max μ
3P1 + P2 = -2P1 + 2P2
5P1 = P2
H : Head
T : Tail
Q : Probability of B 6 P1 = 1
P : Probability of A P1 = 1/6
P2 = 5/6
 Game Theory
B Q Q2
1

H T
A
P1 H Whenever A lose is B gain
3 -2
Whenever B lose is A gain
Pay off matrix for A.
P2 T 1 2
3Q1 - 2Q2
Q1 + 2Q2
H : Head
T : Tail
Q : Probability of B
P : Probability of A
 Game Theory
B Q Q2
1

H T
A
P1 H Whenever A lose is B gain
3 -2
Whenever B lose is A gain
Pay off matrix for A.
P2 T 1 2
3Q1 + 2Q2 = Q1 + 2Q2

2Q1 = 4Q2
H : Head Q1 = 2Q2
T : Tail
Q2 = 1/3
Q : Probability of B
P : Probability of A Q1 = 2/3
 Game Theory
B Q Q2
1

H T
A
P1 H Whenever A lose is B gain
3 -2
Whenever B lose is A gain
Pay off matrix for A.
P2 T 1 2
3Q1 - 2Q2 = Q1 + 2Q2

2Q1 = 4Q2
H : Head Q1 = 2Q2
T : Tail
Q2 = 1/3
Q : Probability of B
P : Probability of A Q1 = 2/3
 Game Theory
B Q Q2
1

A 2/3 H T 1/3
1/6 P1 H Whenever A lose is B gain
3 -2
Whenever B lose is A gain
Pay off matrix for A.
5/6 P2 T 1 2

H : Head
T : Tail
Q : Probability of B
P : Probability of A