OPERATIONS RESEARCH

Problems on Game Theory

1. For the following pay-off matrix for firm A, determine the optimal strategy for both the
firms and the value of the game. (Using Maximin and Minimax principle)
Firm B
3 -1 4 6 7
Firm A -1 8 2 4 12
16 8 6 14 12
1 11 -4 2 1

2. Solve the following game :

3. The pay-off matrix of a game is given below. Find the solution of game to A and B.
Player B
I II III IV V
I -2 0 0 5 3
Player A II 4 2 1 2 5
III -4 -3 0 -3 6
IV 5 1 -5 -2 -6

4. A company management and the labour union are negotiating a new 3 year settlement.
Each player has 4 strategies. They are :
I Hard and aggressive bargaining
II Reasoning and logical approach
III Legalistic strategy
IV Conciliatory approach
The costs to the company are given for every pair of strategy choice.
Company Strategies
I II III IV
I 20 15 12 35
Union Strategies II 25 14 8 10
III 40 2 10 5
IV -5 4 11 0
What strategies will the two sides adopt ? Also determine the value of the game.

5. What is the optimal strategy in the game described by the matrix.

-5 3 1 20
5 5 4 6
-4 -2 0 -5
-2-

6. Following is the pay-off matrix for players A and B.

Player B
I II III IV V
I 2 4 3 8 4
Player A II 5 6 3 7 8
III 6 7 9 8 7
IV 4 2 8 4 3

Using dominance property, obtain the optimum strategies for both the players and
determine the value of game.

7. Solve the following game by applying the principle of dominance.

8 10 9 14
10 11 8 12
13 12 14 13

8. Solve the following game and determine the value of game.

Player Y
Player X Strategy 1 Strategy 2
Strategy 1 4 1
Strategy 2 2 3

9. Given the pay-off matrix for player A, obtain the optimum strategies for both players and
determine the value of the game.

Player B
Player A 6 -3 7
-3 0 4

10. Two firms are competing for business under the conditions so that one firm’s gain is
another firm’s loss. Firm A’s pay-off matrix is given below :

Firm B
Firm A No Medium Heavy
Advertising Advertising Advertising
No Advertising 10 5 -2
Medium Advertising 13 12 15
Heavy Advertising 16 14 10
-3-

11. Reduce the following two person zero sum game to 2 x 2 order and obtain the optimal
strategies for each player and the value of the game.

Player B
Player A B1 B2 B3 B4
A1 3 2 4 0
A2 3 4 2 4
A3 4 2 4 0
A4 0 4 0 8

12. Solve the following game whose pay-off matrix is given below :

1 7 2
6 2 7
5 1 6

13. Solve the following zero sum game where player B plays to player A. Solve graphically.
A B
1 2 3 4 5
1 2 -4 6 -3 5
2 -3 4 -4 1 0

14. Solve the following game graphically.

B
I II III

A I 1 3 11
II 8 5 2

15. Solve the following game graphically whose pay off matrix for Player A is :

A B
I II
I 2 4
II 2 3
III 3 2
IV -2 6