Game theory advanced maths Find the optimum strategies for player A, the row player, and player B, the column player, in the game below. Find the value of the game. (Be sure to look for asaddle point first.)-907-8Choose the correct answer below, and fill in the answer box(es) to complete your choice.(Simplify your answers. Type integers or fractions.)ⒸA. There is no saddle point, and the optimal strategy for player A is P = [OB. The game is strictly determined, and player A will play rowCChoose the correct answer below, and fill in the answer box(es) to complete your choice.(Simplify your answers. Type integers or fractions.)A. There is no saddle point, and the optimal strategy for player B is Q =O B. The game is strictly determined, and player B will play columnThe value of the game is G =(Simplify your answer. Type an integer or a fraction.)1.

Saddle point In game theory, a saddle point is a solution concept for two-player zero-sum games. It…

Answered: Find the optimum strategies for player…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.8P

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Game theory advanced maths

Find the optimum strategies for player A, the row player, and player B, the column player, in the game below. Find the value of the game. (Be sure to look for a
saddle point first.)
-9
0
7-8
Choose the correct answer below, and fill in the answer box(es) to complete your choice.
(Simplify your answers. Type integers or fractions.)
ⒸA. There is no saddle point, and the optimal strategy for player A is P = [
OB. The game is strictly determined, and player A will play row
C
Choose the correct answer below, and fill in the answer box(es) to complete your choice.
(Simplify your answers. Type integers or fractions.)
A. There is no saddle point, and the optimal strategy for player B is Q =
O B. The game is strictly determined, and player B will play column
The value of the game is G =
(Simplify your answer. Type an integer or a fraction.)
1.

Definition Definition Economic decision-making framework that analyzes how different players optimize their outcomes with given pay-offs corresponding to their available strategies. The assumptions of game theory are: The number of players or competitors are finite/limited; All participants are rational The rules of the game are known to every player; and Each participant has a finite set of actions. A common way in which game theory is presented as an ( m x n ) matrix in which m represents the strategies of row player and n represents the strategies of column player. There are several limitations of game theory: Many businesses have a large number of competitors, and selecting an optimal strategy in these circumstances is difficult; Real-life business operating environments are full of uncertainty and difficult to model as a game theory; and The assumption of rationality and utility maximization isn't always an accurate portrayal of human nature.

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