Let a 2 x n game where the payoff matrix will have 2 twos and n columns. Player A will choose two separate strategies. If there is no saddle point of the payoff matrix, this problem can be solved by:
- By using the rule of dominance, reduce the size of payoff matrix (wherever applicable)
- Let probability of strategy I be p and probability of strategy II be 1 – p. and write down expected gains of player A w.r.t to each strategies
- Now, plot the gain functions of the graph. p will be on the x-axis and gain function will be on the y-axis where p will vary between 0 and 1
- Player A is the maximum player. So after finding the highest intersection point in lower envelope or lower boundary of graph, mark this point as maximum point.
- If these numbers of lines are only two, then you have to obtain payoff matrix of 2 x 2 that contains the columns of these lines. If not, then move to step ‘6’ or else go to step ‘4’.
- If there are more than two lines passing through this highest point, then identify only two lines with opposite slope. With this, you can obtain a 2 x 2 payoff matrix as explained in step ‘5’
- Now, solve this 2 x 2 game.
Links of Previous Main Topic:-
- Introduction to statistics
- Knowledge of central tendency or location
- Definition of dispersion
- Moments
- Bivariate distribution
- Theorem of total probability addition theorem
- Random variable
- Binomial distribution
- What is sampling
- Estimation
- Statistical hypothesis and related terms
- Analysis of variance introduction
- Definition of stochastic process
- Introduction operations research
- Introduction and mathematical formulation in transportation problems
- Introduction and mathematical formulation
- Queuing theory introduction
- Inventory control introduction
- Simulation introduction
- Time calculations in network