3.2.3 steps in pure strategy game

Steps in Pure Strategy Games

1. Unit No.3. DECISION SCIENCE Presented By: Dr. V. M. Tidake Ph. D (Financial Management), MBA(FM), MBA(HRM) BE(Chem) Dean, EDP & Associate Professor MBA 1 Sanjivani College of Engineering, Kopargaon Department of MBA www.sanjivanimba.org.in

2. 302-DECISION SCIENCE Unit No.3. Games Theory 3.2.3 Steps in Pure Strategy Game Presented By: Dr. V. M. Tidake Ph. D (Financial Management), MBA(FM), MBA(HRM) BE(Chem) Dean EDP & Associate Professor MBA 2 Sanjivani College of Engineering, Kopargaon Department of MBA www.sanjivanimba.org.in

3. GAMES THEORY At the End of the Session Student will be able to understand- Steps in Pure Strategy Game.

4. Games Theory Step 1: Write down the pay off matrix with the maximizing player along rows and minimizing player along columns. Step 2: Write down the minimum element in each row on its right and Identify the MAXIMIN amongst them. Step 3: Write down the maximum element in each column at its bottom and Identify the MINIMAX amongst them. Step 4: If these two arrowed elements (i.e. Maximin and Minimax) are same, then the element lying at the intersection of the corresponding row and column is called as a ‘Saddle Point’. Step 5: The strategies corresponding to the saddle point are the optimal strategies for the two players, while the saddle point is the value of the game. Step 6: If there are more than one saddle points, then there are more than one solution, one for each saddle point. Step 7: If the arrowed elements (maximin or minimax) are not same, then there is no saddle point and the value of the game lies between these two values. This is a case of mixed strategy games.

5. Games Theory Solve the Following Pure Strategy Game: Firm B Firm A B1 B2 B3 A1 2 8 4 A2 7 10 6

6. Games Theory Solve the Following Pure Strategy Game: Firm B Firm A B1 B2 B3 Min A1 2 8 4 2 A2 7 10 6 6 (Maximin) Max 7 10 6 (Minimax)

7. EXERCISE State and Explain the steps in Pure Strategy Game.

8. For More Details Contact Dr. V M Tidake [email protected] [email protected]

9. Thank You