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Method
Game Theory problem using matrix method calculator
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Game Theory problem using matrix method calculator
1. Find the solution of game using matrix method for the following pay-off matrix
Player B
B_1B_2B_3
Player AA_1 1  7  2 
A_2 6  2  7 
A_3 5  1  6 


Example
1. Find Solution of game theory problem using matrix method
Player A\Player BB1B2B3
A1172
A2627
A3516


Solution:
1. Saddle point testing
Players
Player B
B_1B_2B_3
Player AA_1 1  7  2 
A_2 6  2  7 
A_3 5  1  6 


We apply the maximin (minimax) principle to analyze the game.

Player B
B_1B_2B_3Row
Minimum
Player AA_1 1  7  2 1
A_2 (6)  [2]  7 [2]
A_3 5  1  6 1
Column
Maximum
(6)77


Select minimum from the maximum of columns
Column MiniMax = (6)

Select maximum from the minimum of rows
Row MaxiMin = [2]

Here, Column MiniMax != Row MaxiMin

:. This game has no saddle point.



2. Dominance rule to reduce the size of the payoff matrix
Using dominance property
Player B
B_1B_2B_3
Player AA_1 1  7  2 
A_2 6  2  7 
A_3 5  1  6 


row-3 <= row-2, so remove row-3

Player B
B_1B_2B_3
Player AA_1 1  7  2 
A_2 6  2  7 


column-3 >= column-1, so remove column-3

Player B
B_1B_2
Player AA_1 1  7 
A_2 6  2 




reduced matrix
Player B
B_1B_2
Player AA_1 1  7 
A_2 6  2 


For this reduced matrix, calculate P_(Adj) and P_(Cof)

P_(Adj) = [[2,-7],[-6,1]]

and P_(Cof) = [[2,-6],[-7,1]]

Player A's optimal strategies =([[1,1]] xx P_(Adj))/([[1,1]] xx P_(Adj) xx [[1],[1]])

=([[1,1]][[2,-7],[-6,1]])/([[1,1]][[2,-7],[-6,1]][[1],[1]])

=([[-4,-6]])/(-10)

=[[2/5,3/5]]

p_1=2/5 and p_2=3/5, where p_1 and p_2 represent the probabilities of player A's, using his strategies A_1 and A_2 respectively.


Similarly,
Player B's optimal strategies =([[1,1]] xx P_(Cof))/([[1,1]] xx P_(Adj) xx [[1],[1]])

=([[1,1]][[2,-6],[-7,1]])/([[1,1]][[2,-7],[-6,1]][[1],[1]])

=([[-5,-5]])/(-10)

=[[1/2,1/2]]

q_1=1/2 and q_2=1/2, where q_1 and q_2 represent the probabilities of player B's, using his strategies B_1 and B_2 respectively.


Hence, Value of the game V = (Player A's optimal strategies) xx (Payoff matrix P_(ij)) xx (Player B's optimal strategies)

V=[[2/5,3/5]][[1,7],[6,2]][[1/2],[1/2]]=4




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