Game Theory

(Competitive Strategies)
Competitive Games: A competitive situation is called
a competitive game if it has following properties:

1. There are finite number of competitors, called players. If there are two
persons in a game then it is called 2 person game and if there is n
competitors then it is called n person game. The game may be finite or
infinite.
2. Each of n player has a finite number of rules for play the game.
3. The game will be start when each player start the activity.
4. Each player must be gain in form of payment it may be positive or negative.
• Zero Sum Game: A game is said to be zero
sum game if the sum of payment of all
competitors after a play of the game is
restricted to be zero. It is possible only when
there is one player i.e. no competitor exist.
• Pay off Matrix: A two person game can be
represented in the form of matrix which is
called pay-off matrix or gain matrix. i.e. the
pay-off matrix represent the payment given
to the each player at the end of the game.
in the above figure row indicate the activity of player
A and column indicate the activity of player B, the
cell entry aij represent the payment given to player
A, when A starts ith activity and B starts jth activity.
• Strategy: The strategy of a player is the
predetermined rule by which a player decides his
course of action from his own list of action during
the game. There are two type of strategy:
• Pure Strategy: A pure strategy is a decision in
advance of all the players, always to choose a
particular course of action. It may be identified
by a number representing the course of action
selected.
 • Mixed Strategy: A mixed strategy is a
decision in advance of all the players, to
choose a course of action for each play in
accordance with some particular
probability distribution.
• Saddle point: This is the position of a point in
pay-off matrix when the maximum of row
minima coincides with the minimum of the
column maxima. The cell entry at the saddle
point is called the value of the game.
• Solution of a Rectangular Game with Saddle Point: It
consist of following points:
i. Select the minimum element in each row and encircle
them.
ii. Select the maximum element in each column and
enclose in small square
iii. Select the maximum element in minimum column then
enclose in square box. Now select the minimum
element in maximum row then put in circle.
iv. The point which is enclosed within the circle and the
square both is a saddle point.
v. If v=v=(v)point of intersection then problem has saddle
point. This v is called value of game for player A and –v
is called the value of game for player B.