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3. Oddment method example ( Enter your problem )
  1. Method & Example-1
  2. Example-2

2. Example-2





Find Solution of game theory problem using oddment method
Player A\Player BB1B2
A197
A2511


Solution:
1. Saddle point testing
Players
Player `B`
`B_1``B_2`
Player `A``A_1` 9  7 
`A_2` 5  11 


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

Player `B`
`B_1``B_2`Row
Minimum
Player `A``A_1` (9)  [7] `[7]`
`A_2` 5  11 `5`
Column
Maximum
`(9)``11`


Select minimum from the maximum of columns
Column MiniMax = (9)

Select maximum from the minimum of rows
Row MaxiMin = [7]

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_1``B_2`
Player `A``A_1` 9  7 
`A_2` 5  11 


Also, no course of action dominates the other


Reduced matrix is
Player `B`
`B_1``B_2`
Player `A``A_1` 9  7 
`A_2` 5  11 


Find oddments of individual strategies
1. Find absolute difference between the two values in the first row and put it against second row of the matrix
`|9-7|=2`

2. Find absolute difference between the two values in the second row and put it against first row of the matrix
`|5-11|=6`

3. Find absolute difference between the two values in the first column and put it against second column of the matrix
`|9-5|=4`

4. Find absolute difference between the two values in the second column and put it against first column of the matrix
`|7-11|=4`

So Oddment matrix is
Player `B`
`B_1``B_2`Oddments
Player `A``A_1` 9  7 `|5-11|=6`
`A_2` 5  11 `|9-7|=2`
Oddments`|7-11|=4``|9-5|=4`


Find probabilities of individual strategies
`P(A_1)=(6)/(2+6)=3/4`

`P(A_2)=(2)/(2+6)=1/4`


`P(B_1)=(4)/(4+4)=1/2`

`P(B_2)=(4)/(4+4)=1/2`


Value of game `V=(9*6+5*2)/(2+6)=64/8=8`

Value of game `V=(7*6+11*2)/(2+6)=64/8=8`

Value of game `V=(9*4+7*4)/(4+4)=64/8=8`

Value of game `V=(5*4+11*4)/(4+4)=64/8=8`




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