MOD4_277-279

# MOD4_277-279 - 72106 MOD04 GGS 3/30/05 2:46 PM Page 277 M O...

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277 T EACHING S UGGESTIONS Teaching Suggestion M4.1: Game Theory and Confict. This module covers zero-sum, two-person games. Confict is a part oF our world. Students can be asked to discuss the use oF con- fict analysis and game theory in corporate and political settings. Teaching Suggestion M4.2: Use oF Pure Strategy Games and Dominance. The use oF pure strategy games and dominance shows students that some strategies or alternatives can be eliminated From consid- eration by careFully analyzing the situation. This is an important concept that can be applied to many problems in addition to game theory. A LTERNATIVE E XAMPLE Alternative Example M4.1: Melinda (person A ) and Stanley (person B ) are involved in a competitive situation. Both have two strategies (1 and 2) that they can play. A table showing the win- nings is presented below. S TANLEY ( B ) Melinda ( A ) Strategy 1 Strategy 2 Strategy 1 10 1 Strategy 2 2 7 To solve this game, we determine the strategies For both players. We begin with Melinda (player A ). The equations are as Follows: ±or player A —Melinda: 10 Q 1 2(1 2 Q ) 5 1 Q 1 7(1 2 Q ) 10 Q 1 2 2 2 Q 5 1 Q 1 7 2 7 Q 14 Q 5 5; Q 5 5/14 5 0.357 2 strategy 1 For player A —Melinda 1 2 Q 5 9/14; Q 5 0.643 2 strategy 2 For player A —Melinda ±or player B —Stanley: 10 P 1 1(1 2 P ) 5 2 P 1 7(1 2 P ) 10 P 1 1 2 P 5 2 P 1 7 2 7 P 14 P 5 6; P 5 6/14 5 0.429 2 strategy 1 For player B —Stanley 1 2 P 5 8/14 5 0.571 2 strategy 2 For player B —Stanley S OLUTIONS TO D ISCUSSION Q UESTIONS AND P ROBLEMS M4-1. A two-person game is one in which only two players can participate. These players could be people, companies, other organizations, governments, and so on. A zero-sum game means that when one person wins the other person must lose. ThereFore, the sum oF gains and losses For both players will always be equal to zero because when one player wins, the other player loses.

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## This note was uploaded on 02/06/2012 for the course DSCI 3331 taught by Professor Michaelhanna during the Spring '11 term at UH Clear Lake.

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MOD4_277-279 - 72106 MOD04 GGS 3/30/05 2:46 PM Page 277 M O...

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