GAME THEORY

GIVEN

THE FOLLOWING PAY - OFF MATRIX

2 4 5

10 7 Q

4 P 6
OBJECTIVE

 To find the Range of P & Q so

that a22 becomes the saddle
point



 LEARNINGS

 Saddlepoint is the entry which is

simultaneously a maximum of
row minima and a minimum of
column maximum
 THEREFORE for a22 (7) to be a saddle point
following conditions should be met:-
1.It should be the maximum of row minima
2.It should be the minimum of coloumn maximum.

 PROCEEDINGS
 Finding minimum of each ROW and encircle
 it..
Taking 7 as the smallest element of the row.

22 4 5


10 77 Q
Taking P as the smallest element of the row.

4 PP 6
THUS
 Q must be greater than equal to 7
 i.e. Q>=7
 1. P must be less than equal to 4
 i.e.P<=4
 ELSE
 2. IF P>=4…then 4 is encircled
 

 Finding maximum of each column and
putting a square.


22 4 5

10
10 77 QQ
4 PP 6
 2. For p>4

22 4 5

10
10 77 QQ
Assuming 7 is the largest element of the column.

44 P 6
THUS
 Taking all the assumptions we get 7 as the
saddle point and according to the
assumptions we get the following range
1.

1.Q>=7
2.p<=7
Show that Game G is strictly determinable
whatever k maybe and determine the value
of the game?

B1 B2

A1 2 6
A
A2 -2 k
 CASE 1: k < -2


 B

B1 B2


 A1 2 6
 A
A2 -2 -3


 SADDLE POINT=2
 Value of the game is 2
 CASE 2: k = -2


 B

B1 B2


 A1 2 6
 A
A2 -2 -2


 SADDLE POINT=2
 Value of the game is 2
 CASE 3: -2 < K < 6


 B

B1 B2


 A1 2 6
 A
A2 -2 4


 SADDLE POINT=2
 Value of the game is 2
 CASE 4: K=6



B


 B1 B2
 A1

2 6
A A2
-2 
6


 SADDLE POINT=2
 Value of the game is 2
 CASE 5: K > 6


 B

B1 B2


 A1 2 6
 A
A2 -2 8

SADDLE POINT= 2
Value of t he gam e is 2
 B



B1 B2

A1 2 6

A -2 8
A2 

 Whatever the value of k, value of the game

will always be 2.
THANKS