The document discusses solving game theory problems using the graphical method. It provides an example of a game theory matrix and walks through solving it graphically. The solution involves drawing parallel lines to represent each player's strategies, plotting the values for each combination, and finding the lowest point in the shaded region which indicates the value of the game.
The document discusses solving game theory problems using the graphical method. It provides an example of a game theory matrix and walks through solving it graphically. The solution involves drawing parallel lines to represent each player's strategies, plotting the values for each combination, and finding the lowest point in the shaded region which indicates the value of the game.
The document discusses solving game theory problems using the graphical method. It provides an example of a game theory matrix and walks through solving it graphically. The solution involves drawing parallel lines to represent each player's strategies, plotting the values for each combination, and finding the lowest point in the shaded region which indicates the value of the game.
The document discusses solving game theory problems using the graphical method. It provides an example of a game theory matrix and walks through solving it graphically. The solution involves drawing parallel lines to represent each player's strategies, plotting the values for each combination, and finding the lowest point in the shaded region which indicates the value of the game.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 3
GAME THEORY
To solve the matrix of game theory, graphical method is the easiest compared to other methods such as dominance property, matrix method etc. In the graphical method it is assumed that there is no saddle point. But till now graphical method is restricted to (2×m) or (n×2) matrix only. This paper highlights, the solution of (n×m) matrix by graphical method, which is solved by dominance property till date. This method is easier to understand and takes less time to get the solution.
Find Solution of game theory problem using graphical method
\Player B Player A B1 B2 A1 1 -3 A2 3 5 A3 -1 6 A4 4 1 A5 2 2 A6 -5 0
Solution using graphical method First, we draw two parallel lines 1 unit distance apart and mark a scale on each. The two parallel lines represent strategies of player B.
If player A selects strategy A1, player B can win 1 or -3 units depending on B’s selection of
strategies.
The value 1 is plotted along the vertical axis under strategy B1 and the value -3 is plotted along the vertical axis under strategy B2.
A straight line joining the two points is then drawn.
Similarly, we can plot strategies A2,A3,A4,A5,A6 also. The problem is graphed in the following figure. The lowest point V in the shaded region indicates the value of game. From the above figure, the value of the game is 3.4 units.
1. The point of optimal solution occurs at the intersection of two lines
E2=3p1+5p2
E4=4p1+p2
Comparing the above two equations, we have
3p1+5p2=4p1+p2
Substituting p2=1-p1
( ) ( ) 3p1+5 1-p1 =4p1+ 1-p1
Solving p1=45
p2=1-p1=1-45=15
Substituting the values of p1 and p2 in equation E2
V=3 ()() 45 +5 15 =175
2. The point of optimal solution occurs at the intersection of two lines
L2=3q1+4q2
L4=5q1+q2 Comparing the above two equations, we have 3q1+4q2=5q1+q2
Substituting q2=1-q1
( ) ( ) 3q1+4 1-q1 =5q1+ 1-q1
Solving q1=35
q2=1-q1=1-35=25
Substituting the values of q1 and q2 in equation L2
