Game Theory 2person Zero-Sum Game
Game Theory 2person Zero-Sum Game
Game Theory 2person Zero-Sum Game
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Content
Introduction
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Example 1
Example 2
Real Case Problem
Reference
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ASSUMPTIONS
There are finite number of players.
There is conflicts of interests between them.
Players know all possible available choices but does
not know which one is going to be chosen
Players simultaneously select their respective
courses of action.
Their payoff is fixed and determine in advance.
CLASSIFICATION
Two-Person Game- A game with 2 players.
N-Person Game- A game with N number of player,
where n>2.
Zero-Sum Game- A game in which gains are equal
to sum of losses.
Non-Zero Sum Game- A game in which sum of
gains and losses is not equal.
Pure-Strategy Game- Each player plays one
strategy throughout the game.
Mixed-Strategy Game- Each player employ
different strategies at different times in the game.
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Pay Off
It is the sum of gains and losses from the game that
are available to the players.
If in a game sum of the gains to one player is
exactly equal to the sum of losses to another player,
so that the sum of the gains and losses equals zero
then the game is said to be a zero-sum game.
There are also games in which the sum of the
players gains and losses does not equal to zero,
and these games are denoted as non-zero sum
games.
Two-person, Zero-sum
Game- Pure Strategy
Characteristics:
1. Two-players with finite set of strategies.
2. Losses of one player is the exact gain of the others
3. One strategy is repeatedly recommended to each
player
4. Bargaining is not allowed. There could be no
mutually advantageous agreement.
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Example 1:
Two Person Zero Sum Game With Single Saddle Point
Find optimal strategies for person A & person B and find
value of game
B1
B2
B3
B4
A1
-5
20
A2
A3
-2
-5
11
B2
B3
B4
Row
Minimum
A1
-5
20
-5
A2
A3
-2
-5
-5
12
B1
B2
B3
B4
Row
Minimum
A1
-5
20
-5
A2
A3
-2
-5
-5
Column
Maximum
20
13
B2
B3
B4
Row
Minimum
A1
-5
20
-5
A2
A3
-2
-5
-5
Column
Maximum
20
maximin
minimax
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Example 2:
Two Person Zero Sum Game With Two Saddle Point
Find optimal strategies for person A & person B and
find value of game
B1
B2
B3
A1
-1
A2
A3
A4
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Example 2:
Two Person Zero Sum Game With Two Saddle Point
B2
B3
Row
Minimum
A1
-1
-1
A2
A3
A4
Column
Maximum
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minimax
maximin
Since there are two Maximin and one Minimax, the game has 2 saddle points,
(A2,B2)&(A4,B2)
Thus, optimal strategy A is A2&A4 and for B is B2
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Given Data:
Company Strategies
Union
Strategies
C1
C2
C3
C4
U1
2.0
1.5
1.2
3.5
U2
2.5
1.4
0.8
1.0
U3
4.0
0.2
1.0
0.5
U4
-0.5
0.4
1.1
0.0
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C1
C2
C3
C4
U1
2.0
1.5
1.2
3.5
U2
2.5
1.4
0.8
1.0
U3
4.0
0.2
1.0
0.5
U4
-0.5
0.4
1.1
0.0
Row
Minimum
Column
maximum
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Union
Strategies
C1
C2
C3
C4
Row
Minimum
U1
2.0
1.5
1.2
3.5
1.2
U2
2.5
1.4
0.8
1.0
0.8
U3
4.0
0.2
1.0
0.5
0.2
U4
-0.5
0.4
1.1
0.0
-0.5
Column
maximum
20
C1
C2
C3
C4
Row
Minimum
U1
2.0
1.5
1.2
3.5
1.2
U2
2.5
1.4
0.8
1.0
0.8
U3
4.0
0.2
1.0
0.5
0.2
U4
-0.5
0.4
1.1
0.0
-0.5
Column
maximum
4.0
1.5
1.2
3.5
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Union
Strategies
C1
C2
C3
C4
Row
Minimum
U1
2.0
1.5
1.2
3.5
1.2
Maximin
U2
2.5
1.4
0.8
1.0
0.8
U3
4.0
0.2
1.0
0.5
0.2
U4
-0.5
0.4
1.1
0.0
-0.5
Column
maximum
4.0
1.5
1.2
3.5
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Union
Strategies
C1
C2
C3
C4
Row
Minimum
U1
2.0
1.5
1.2
3.5
1.2
U2
2.5
1.4
0.8
1.0
0.8
U3
4.0
0.2
1.0
0.5
0.2
U4
-0.5
0.4
1.1
0.0
-0.5
Column
maximum
4.0
1.5
1.2
3.5
Maximin
Minimax
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C1
C2
C3
C4
Row
Minimum
Saddle point
U1
2.0
1.5
1.2
3.5
1.2
U2
2.5
1.4
0.8
1.0
0.8
U3
4.0
0.2
1.0
0.5
0.2
U4
-0.5
0.4
1.1
0.0
-0.5
Column
maximum
4.0
1.5
1.2
3.5
Minimax
Maximin
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Company Strategies
Union
Strategies
C1
C2
C3
C4
Row
Minimum
Conclusion:
U1
2.0
1.5
1.2
3.5
1.2
U2
2.5
1.4
0.8
1.0
0.8
4.0
1.5
1.2
3.5
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References
https://www.youtube.com/watch?v=R7Sbc8s3FxA
http://www.egwald.ca/operationsresearch/gametheory.p
hp3
https://www.youtube.com/watch?v=PqK6dXPlr8&list=UU_zylrAtEs3Kd7ENktYQxMQ
http://www.princeton.edu/~rvdb/542/lectures/lec8.pdf
http://www.encyclopediaofmath.org/index.php/Twoperson_zero-sum_game
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