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11. Bimatrix method example ( Enter your problem )
  1. Method & Example-1 (pure strategy nash equilibrium)
  2. Example-2 (pure strategy nash equilibrium)
  3. Example-3 (no pure strategy nash equilibrium)

3. Example-3 (no pure strategy nash equilibrium)





Find Solution of game theory problem using Bimatrix method
Player A\Player BLR
U2,-31,2
D1,14,-1


Solution:
Player `B`
`L``R`
Player `A``U` 2, -3  1, 2 
`D` 1, 1  4, -1 


Player `B`
`color{green}{L}``color{green}{R}`
Player `A``color{red}{U}` 2 , -3  1 , 2 
`color{red}{D}` 1 , 1  4 , -1 


The cells with both entries underlined represents pure strategy nash equilibrium.
The game has no pure strategy nash equilibrium


Let p be the probability of Player-1 and q be probability of Player-2.
For Player-1
`E(U)=2*q+1*(1-q)`

`E(D)=1*q+4*(1-q)`

`E(U)=E(D)`

`=>2q+(1-q)=q+4(1-q)`

`=>4q=3`

`=>q=3/4`

`=>(1-q)=1-3/4=1/4`

For Player-2
`E(L)=-3*p+1*(1-p)`

`E(R)=2*p-1*(1-p)`

`E(L)=E(R)`

`=>-3p+(1-p)=2p-(1-p)`

`=>-7p=-2`

`=>p=2/7`

`=>(1-p)=1-2/7=5/7`

The payoff for player-1 is
`(2xx3/4)+(1xx1/4)=(1xx3/4)+(4xx1/4)=7/4`

The payoff for player-2 is
`(-3xx2/7)+(1xx5/7)=(2xx2/7)+(-1xx5/7)=-1/7`




This material is intended as a summary. Use your textbook for detail explanation.
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