MATH5360 Game Theory

Exercise 1

Assignment 1: 1,2(a)(c)(e)(g),3,5,7,11,13 (Due: 3 Feb 2020 (Monday))

1. Find the values of the following game matrices by finding their saddle points
   
5 1 −2 6 −4 5 −3 −3
(a)  −1 0 1 −2   0 1 3 −1 
(b)  −3 −1 2 −5 

3 2 5 4
2 −4 0 −2

2. Solve the following game matrix, that is, find the value of the game, a maximin
strategy for the row player and a minimax strategy for the column.
   
1 7 5 −3
(a)
2 −2  −3 5 
(e) 
 2 −1 

 
3 −1 4 0
(b)
−2 4  
5 −2 4
  (f)  3 −3 1 
3 2 4 0
(c) 0 3 2
−2 1 −4 5  
  5 1 −2 6
1 0 4 2 (g)  −1 0 1 −2 
(d)
0 2 −3 −2 3 2 5 4

3. Raymond holds a black 2 and a red 9. Calvin holds a red 3 and a black 8. Each of
them chooses one of the cards from his hand and then two players show the chosen
cards simultaneously. If the chosen cards are of the same colour, Raymond wins
and Calvin wins if the cards are of different colours. The loser pays the winner an
amount equal to the number on the winner’s card. Write down the game matrix,
find the value of the game and the optimal strategies of the players.

4. Alex and Becky point fingers to each other, with either one finger or two fingers.
If they match with one finger, Becky pays Alex 3 dollars. If they match with two
fingers, Becky pays Alex 11 dollars. If they don’t match, Alex pays Becky 1 dollar.

(a) Find the optimal strategies for Alex and Becky.

(b) Suppose Alex pays Becky k dollars as a compensation before the game. Find
the value of k to make the game fair.

5. Player I and II choose integers i and j respectively where 1 ≤ i, j ≤ 7. Player II

pays Player I one dollar if |i − j| = 1. Otherwise there is no payoff. Write down the
game matrix of the game, find the value of the game and the optimal strategies for
the players.
MATH5360 Game Theory 2

6. Use the principle of indifference to solve the game with game matrix
 
1 −2 3 −4
 0 1
 −2 3  
 0 0 1 −2 
0 0 0 1

7. In the Mendelsohn game, two players choose an integer from 1 to 5 simultaneously.

If the numbers are equal there is no payoff. The player that chooses a number one
larger than that chosen by his opponent wins 1 dollar from its opponent. The player
that chooses a number two or more larger than his opponent loses 2 dollars to its
opponent. Find the game matrix and solve the game.

8. Aaron puts a chip in either his left hand or right hand. Ben guesses where the chip
is. If Ben guesses the left hand, he receives $2 from Aaron if he is correct and pays
$4 to Aaron if he is wrong. If Ben guesses the right hand, he receives $1 from Aaron
if he is correct and pays $3 to Aaron if he is wrong.

(a) Write down the payoff matrix of Aaron. (Use order of strategies: Left, Right.)
(b) Find the maximin strategy for Aaron, the minimax strategy for Ben and the
value of the game.

9. Let  
−3 1
A=
c −2
where c is a real number.

(a) Find the range of values of c such that A has a saddle point.
(b) Suppose the zero sum game with game matrix A is a fair game.
(i) Find the value of c.
(ii) Find the maximin strategy for the row player and the minimax strategy
for the column player.

10. Prove that if A is a skewed symmetric matrix, that is, AT = −A, then the value of
A is zero.

11. Let n be a positive integer and 1 = (1, 1, · · · , 1) ∈ Rn . Prove the following state-
ments.

(a) If A is an n × n symmetric matrix, that is AT = A, and there exists probability

vector y ∈ P n such that AyT = v1T where v ∈ R is a real number, then v is
the value of A.
(b) There exists an n × n matrix A, a probability vector y ∈ P n and a real number
v such that AyT = v1T but v is not the value of A.
MATH5360 Game Theory 3

12. Let n be a positive integer and

 
λ1
 λ2 0 
D=
 
.. 
.
0
 
λn

be an n × n diagonal matrix where λ1 ≤ λ2 ≤ · · · ≤ λn .

(a) Suppose λ1 ≤ 0 and λn > 0. Find the value of the zero sum game with game
matrix D.
(b) Suppose λ1 > 0. Solve the zero sum game with game matrix D.

13. Let  
1 −1 0 0 0

 −1 −1 1 0 0 

A=
 0 1 1 −1 0 .

 0 0 −1 −1 1 
0 0 0 1 −1

(a) Find a vector x = (1, x2 , x3 , x4 , x5 ) ∈ R5 and a real number a such that

AxT = (0, 0, 0, 0, a)T

(b) Find a vector y = (1, y2 , y3 , y4 , y5 ) ∈ R5 and a real number b such that

AyT = (1, 1, 1, 1, b)T

(c) Find the maximin strategy, the minimax strategy and the value of A. (Hint:
Find real numbers α, β ∈ R such that q = αx + βy satisfies AqT = v1T for
some v ∈ R.)

14. For positive integer k, define

 
4k − 3 −(4k − 2)
Ak = .
−(4k − 1) 4k

(a) Solve Ak , that is, find the maximin strategy, minimax strategy and value of Ak
in terms of k.
(b) Let r1 , r2 , · · · , rn > 0 be positive real numbers. Using the principle of indiffer-
ence, or otherwise, find, in terms of r1 , r2 , · · · , rn , the value of
 1 
r1
0 0 · · · 0
 0 1 0 ··· 0 
 r2 
 0 0 1 ··· 0 
D= r .
 . . .3 . .
. . . . .

 . . . . . 
0 0 0 · · · r1n
MATH5360 Game Theory 4

(c) Find, with proof, the value of the matrix

 
A1 0 0 ··· 0
 0
 A2 0 ··· 0 

A= 0
 0 A3 ··· 0 .

 .. .. .. .. .. 
 . . . . . 
0 0 0 ··· A25