Game theory The game is defined as an activity between two or more persons, each of whom makes his own

decision to defeat others, obeying a set of rules, at the end of which each person gets some benefit (or satisfaction) or suffers a loss(negative benefit). The set of rules is called the rules of the game. A play of the game means the competition of the set of rules once by the participants, and getting the positive or negative benefit, as one deserves it. A competitive game is defined as the conflicting situation in which the participants act, if the following four properties are true. (i) There is a finite number n of the competitors (called the players) such that n is equal to or greater than two. (There cannot be a competition for only one person), If n=2, then it is called a two-person game, and if n>2, then it is called a many person game. (Here n should not be infinite). (ii) Each player has, available to him, a set of finite number of possible courses of action or moves (where the set may not be the same for each player). There should not be infinite number of available courses of action to any player. (iii) Each player should choose only one of his own moves according to his own judgement, without any knowledge or hints from his opponents, and all the competitors will expose their individual moves simultaneously. (iv) Each combination of courses of action by the participants should determine an outcome. The outcome may be number of points, money, or any other thing which gives a gain (positive or negative or zero) to each player, provided each player is acting to get as much as possible, without any compromise with other players. There should not be any indeterminacy in the outcome, and also the outcome must not depend upon what happened in the past and what is going to happen in future. Problem 1) A children game is as follows. Each of the players R and C says stone or disk or paper denoted by S,D,P respectively. If one says S and the other says D, then the former gets two rupees from the latter. If one says D and the other says P, then the former gets three rupees from the latter. If one says P and the other says S, then the former gets four rupees from the latter. If two players name the same item, the game is a tie. Set up the game matrix A. 2)Find the maximini and minimaxi values of the following pay-off matrices. Verify that the first one is less than the second one. A= 2 -4 8 A= 1 9 6 0 -8 5 -6 2 3 8 4 6 -7 6 -5 -2 10 -3 7 4 -2 -5 3) Find the saddle point(if any) and the value of the game and also state whether the game is fair, where the pay-off matrix A for the row player is as follows. A= 3 0 -4 -3 A= -5 2 1 20 2 3 1 2 5 5 4 6 -4 2 -1 3 4 -2 0 -5 4) In a matching coin game, the matching player R is paid Rs. 8 if two coins turn both heads and Rs.1 if the coins turn both tails. The non-matching player C is paid Rs.3 when two coins do not match. Given the choice of being R and C which of R and C would one choose and what would be his strategy. 5) Each of two players R and C has three coins, which are one-paise coin, five paise coin and ten-paise coin. Each of them show a coin simultaneously. If the total amount of money shown is even paise,then R wins the coin of C. If it is odd, then C wins the coin of R.Represent the game in a matrix and find the solution of the game. 6) Two producer R and C are competing for the same product . Their various strategies,are given in the following pay-off matrix A=[aij]. Using the dominance principles, find their optimal strategies and the expected gain in the product. 3 2 4 0 A = 3 4 2 4 4 2 4 0 0 4 0 8