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Operations Management - Game Theory, Goal Programming & Queuing Theory

Linear programming technique - Linear Programming Approach To Game Theory

   Posted On :  25.06.2018 01:22 am

When there is neither saddle point nor dominance in a problem of game theory and the payoff matrix is of order 3x3 or higher, the probability and graphical methods cannot be employed. In such a case, linear programming approach may be followed to solve the game.

Linear programming technique
 
A general approach to solve a game by linear programming technique is presented below. Consider the following game:





Statement of the problem




We can use simplex method to solve the above problem. For this purpose, we have to introduce non-negative slack variables s1 , s2 ,..., sm to each of the inequalities. So the problem can be restated as follows: Restatement of the problem:



In a similar manner we can determine the optimal strategy for player A.
 
Application
 
We illustrate the method for a 2X2 zero sum game. 

Tags : Operations Management - Game Theory, Goal Programming & Queuing Theory
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