Game Theory Questions
Game theory questions with solutions are given here for practice and to understand the
concept of game theory as a decision theory. In operations research, game theory
(https://byjus.com/maths/game-theory/) is a mathematical theory that deals with some kind
of decisions in a competitive situation.
The theory of games started in the 20th century and it was proposed by John Von Neuman and
Morgenstern. It uses the minimax principle to decide the strategy within a competitive
situation.
Some terms related to game theory:
Terms Definition
Competitive A situation that has two or more opponent parties/players where each
situations player has a finite list of possible moves with conflicting interests with
each other. The action of one depends on the action of the other.
Finite and infinite A game which only a finite number of moves, is called a finite game.
game
A game which is not finite is called an infinite game.
Strategy It is a predetermined plan that a player uses during the course of the
game. There are two types of strategy:
Pure strategy
Mixed strategy
Pure strategy A particular game plan in a deterministic game situation (where a
player what other player is going to do), whose objective is to maximize
the gain
Mixed strategy When a player is guessing the next move of the opponent, a probabilistic
situation is created whose objective is to maximise the expected gain.
Thus, a mixed strategy is to select among pure strategies with a fixed
probability.
Zero-sum game If the sum of all the payments to all the players after a play of a game is
equal to zero.
Two-person In a game where there are only two players and the gain of one results in
zero-sum game the loss of the other, such that the net gain of both the player is zero.
(rectangular
game)
Pay-off matrix A matrix that shows the payment of each player for a particular strategy
after a play or end of the game
Value of the It is the maximum gain to the maximizing player if both the player uses
game their best strategy. It is denoted by ‘V’ and is unique.
If the value of the game for player A (maximizing player) is ε then the
value for the opponent player will be –ε (a rectangular game)
Maximin- Maximin: The maximising player lists all his minimum gains from
Minimax principle the respective strategies, and selects a strategy which gives the
maximum gain out the selected minimum gains.
Minimax: The minimising player lists all his maximum gains from
the respective strategies, and selects a strategy which gives the
minimum gain out of the selected maximum gains
Saddle point Saddle point of a pay-off matrix is that position where the maximum of
the row minima coincides with the minimum of the column maxima.
For a rectangular game,
Maximin of A = Minimax of B is the saddle point of the game.
Game Theory Questions With Solutions
Now let us solve some important questions asked on Game theory.
Question 1:
Solve the following pay-off matrix:
Player A
Player B
Strategies I II III
I 6 8 6
II 4 12 2
Solution:
We shall solve the given pay-off matrix by finding the saddle point,
Player A
Player B
Strategies I II III Row Minimum
I 6 8 6 6 Max.
II 4 12 2 2
Column Maximum 6 Min. 12 6 Min.
The matrix has two saddle points at (1, 1)and (1, 3). Thus, the solution of game:
(i) Best strategy for player A is I
(ii) Best strategy for player B is I or III
(iii) Value of the game for A is 6 and for B is –6
Question 2:
Solve the following pay-off matrix:
Player A
Player B
Strategies I II III IV
I 1 7 3 4
II 5 6 4 5
III 7 2 0 3
Solution:
We shall solve the given pay-off matrix by finding the saddle point,
Player A
Player B
Strategies I II III IV Row minimum
I 1 7 3 4 1
II 5 6 4 5 4 Max.
III 7 2 0 3 0
Column maximum 7 7 4 Min. 5
The solution of the game:
(i) Best strategy for player A is II
(ii) Best strategy for player B is III
(iii) Value of the game for A is 4 and for B is –4.
Points to remember:
Saddle points may or may not exist for a game
There may be more than one saddle point, in that case, the game has more than one
solution
If the value of the game is zero this means it is a ‘fair game’.
Question 3:
Solve the following pay-off matrix:
Player A
Player B
Strategies I II III IV V
I 9 3 1 8 0
II 6 5 4 6 7
III 2 4 3 3 8
IV 5 6 2 2 1
Solution:
We shall solve the given pay-off matrix by finding the saddle point,
Player A
Player B
Strategies I II III IV V Row Minimum
I 9 3 1 8 0 0
II 6 5 4 6 7 4 Max.
III 2 4 3 3 8 2
IV 5 6 2 2 1 1
Column Maximum 9 6 4 Min. 8 8
The solution for the game:
(i) Best strategy for player A is II
(ii) Best strategy for player B is III
(iii) Value of the game for A is 4 and for B is –4.
Question 4:
Find a range of values of a and b for which the following pay-off matrix will a saddle point at (2,
2) position.
Player A
Player B
Strategies I II III
I 2 4 5
II 10 7 b
III 4 a 6
Solution:
Finding the row minimum and column maximum of the given pay-off matrix,
Player A
Player B
Strategies I II III Row minimum
I 2 4 5 2
II 10 7 b 7
III 4 a 6 4
Column Maximum 10 7 6
Now, given (2,2) is a saddle point, for row 2, 7 will be the minimum then b > 7. In the second
column, 7 will be the maximum, then a < 7. If b = 7, then also (2,2) is a saddle point. But if b = 7,
then (2, 3) will also be a saddle point.
∴ the range of values for a and b are a ≤ 7 and b > 7.
Question 5:
Solve the following pay-off matrix:
Player A
Player B
Strategies I II III
I 1 3 1
II 0 –4 –3
III 1 5 –1
Solution:
We shall solve the given pay-off matrix by finding the saddle point,
Player A
Player B
Strategies I II III Row minimum
I 1 3 1 1 Max.
II 0 –4 –3 –3
III 1 5 –1 –1
Column maximum 1 Min. 5 1 Min.
The given pay-off matrix has two saddle points at (1, 1) and (1, 3).
The solution for the game:
(i) Best strategy for player A is I
(ii) Best strategy for player B is I or III
(iii) Value of the game for A is 1 and for B is –1
Mixed Strategies Games:
A pay-off matrix without any saddle point comes under a game of mixed strategy. Methods
of solving such a problem:
Odds method ( 2 × 2 game without saddle point)
Dominance method
Sub-games method – (for m × 2 or 2 × n matrices)
Graphical method
Odds Method – 2 × 2 Game
Steps:
Find the difference between the element in (1, 1) and (1, 2), and place it in front of the
second row.
Find the difference between the element in (2, 1) and (2, 2), and place it in front of the
first row.
Find the difference between the element in (1, 1) and (2, 1), and place it in front of the
second column.
Find the difference between the element in (1, 2) and (2, 2), and place it in front of the
first column.
P layerB
Strategy I II Odds
P layerA I a1 a2 |b1 − b2|
II b1 b2 |a1 − a2|
Odds |a1 − b2| |a2 − b2|
Ignore the negative sign of the odds, then the solution of game:
Value of the game
a1|b1−b2|+b1|a1−a2|
V = |b1−b2|+|a1−a2|
Probability for the strategies of A:
|b1−b2|
P (Strategy I) = |b1−b2|+|a1−a2|
|a1−a2|
P (Strategy II) = |b1−b2|+|a1−a2|
Probability for the strategies of B:
|a2−b2|
P (Strategy I) = |a2−b2|+|a1−b1|
|a1−b1|
P (Strategy II) = |a2−b2|+|a1−b1|
Question 5:
Solve the following pay-off matrix:
Player A
Player B
Strategy I II
I 1 5
II 4 2
Solution:
The matrix have no saddle points, thus solving by the method of odds
Player A
Player B
Strategy I II Odds
I 1 5 |4 – 2| = 2
II 4 2 |1 – 5| = 4
Odds |5 – 2| = 3 |1 – 4| = 3
Value of game, V = [1 × 2 + 4 × 4]/[2 + 4] = 18/6 = 3
Probabilities of selecting strategies:
Probability of strategies → I II
Players ↓
A 1/3 2/3
B 1/2 1/2
Question 6:
Solve the following pay-off matrix:
Player A
Player B
Strategy I II
I –2 8
II 5 –1
Solution:
The matrix have no saddle points, thus solving by the method of odds
Player A
Player B
Strategy I II Odds
I 2 8 |5 – 1| = 4
II 5 1 |2 – 8| = 6
Odds |8 – 1| = 7 |2 – 5| = 3
Value of game, V = [2 × 4 + 5 × 6]/[4 + 6] = (6 + 30)/10 = 3.6
Probabilities of selecting strategies:
Probability of strategies → I II
Players ↓
A 2/5 3/5
B 7/10 3/10
Dominance Method:
The main principle behind the dominance method is that if the strategy of a player
dominates over the other in all conditions, then the later strategy is ignored.
Rules of dominance method:
If all the elements of the ith row of a payoff matrix are less than or equal to the
corresponding jth row, then the jth row strategy dominates over the ith row strategy.
Hence, ith row is deleted.
If all the elements of the r-th column are greater than or equal to the corresponding s-
th column, then the s-th column dominates over the r-th column. Hence the r-th
column is deleted.
A pure strategy may be dominated if it is inferior to an average of two or more other
pure strategies.
The objective is to reduce the given pay-off matrix into a 2 × 2 matrix which can be solved by
the odds method.
Also Read:
Linear Programming Problem (https://byjus.com/maths/linear-programming-problem-
lpp/)
Simplex Method for Solving LPP (https://byjus.com/maths/revised-simplex-method/)
Alternate Optima (https://byjus.com/maths/alternate-optima/)
Vogel’s Approximation method (https://byjus.com/maths/vogels-approximation-
method/)
Question 7:
Solve the following pay-off matrix:
⎡−1 −2 8 ⎤
7 5 −1
⎣6 0 12 ⎦
Solution:
Clearly, the given pay-off matrix has no saddle points. Let apply the dominance rules to reduce
the given pay-off matrix to a 2 × 2 matrix
Elements of row 1 < Elements of row 3 ⇒ Row 1 is deleted
The resultant pay-off matrix
Player A
Player B
Strategies I II III
II 7 5 –1
III 6 0 12
Elements of column 1 > Elements of column 2 ⇒ Column 1 is deleted
The resultant pay-off matrix
Player A
Player B
Strategies II III
II 5 –1
III 0 12
Now let us apply the odds method, to find the value and probability of strategies.
Player A
Player B
Strategies II III Odds
II 5 –1 12
III 0 12 6
Odds 13 5
Value of the game = [5 × 12 + 0 × 6]/[12 + 6] = 60/18 = 10/3
Probability selecting strategies:
Player A:
I=0
II = ⅔
III = ⅓
Player B:
I=0
II = 13/18
III = 5/18
Question 8:
Solve the following pay-off matrix:
⎡3 2 4 0⎤
2 4 2 4
4 2 4 0
⎣0 4 0 8⎦
Solution:
Clearly the given pay-off matrix has no saddle point, let us reduce the given matrix using
dominance rules:
Elements of row 1 < Elements of row 3 ⇒ Row 1 is deleted
The resultant pay-off matrix
Player A
Player B
Strategies I II III IV
II 2 4 2 4
⎢⎥ III
IV
4
Elements of column 1 = Elements of column 3 ⇒ Column 1 is deleted
The resultant pay-off matrix
2
4
4
0
0
8
Player A
Player B
Strategies II III IV
II 4 2 4
III 2 4 0
IV 4 0 8
Now, average of column III and IV (3, 2, 4) is dominated by column II, the matrix is reduced to
Player A
Player B
Strategies III IV
II 2 4
III 4 0
IV 0 8
The average of row III and IV (2, 4) is equal to the elements of row II, the matrix reduced to
Player A
Player B
Strategies III IV
III 4 0
IV 0 8
Now let us apply the odds method, to find the value and probability of strategies.
Player A
Player B
Strategies II III Odds
III 4 0 8
IV 0 8 4
Odds 8 4
Value of the game = [4 × 8 + 0 × 4]/[8 + 4] = 32/12 = 8/3
Probability selecting strategies:
Player A:
I=0
II = 0
III = ⅔
IV = ⅓
Player B:
I=0
II = 0
III = ⅔
IV = ⅓
Also Read:
North West Corner Rule (https://byjus.com/maths/north-west-corner-rule/)
Balanced and Unbalanced Transportation Problem (https://byjus.com/maths/balanced-
and-unbalanced-transportation-
problems/#:~:text=As%20we%20all%20know%2C%20a,minimizing%20the%20total%20trans
portation%20cost.)
Weak and Strong Duality (https://byjus.com/maths/weak-and-strong-duality/)
Question 9:
Solve the following pay-off matrix:
⎡30 40 −80⎤
0 15 −20
⎣90 20 50 ⎦
Solution:
Clearly, the given pay-off matrix has no saddle point, let us reduce the given matrix using
dominance rules:
All elements of row 2 < all elements of row 3 ⇒ deleting the row 2, we get the resultant pay-off
matrix
Player A
Player B
Strategy I II III
I 30 40 –80
⎢⎥
pay-off matrix
Player A
III
Strategy
III
90
Player B
II
40
20
20
III
–80
50
Now let us apply the odds method, to find the value and probability of strategies.
50
All elements of column I > all elements of column III ⇒ deleting column I, we get the reduced
Player A
Player B
Strategies II III Odds
I 40 –80 30
III 20 50 120
Odds 130 60
Value of the game = [40 × 30 + 20 × 120]/[30 + 120] = 3600/150 = 24
Probability selecting strategies:
Player A:
I = 1/5
II = 0
III = 4/5
Player B:
I=0
II = 13/15
III = 2/15.
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Practice Problems on Game Theory
1. Solve the following pay-off matrices
(i)
Player A
Player B
Strategies I II III
I 1 2 3
II –3 1 2
III 1 3 2
(ii)
Player A
Player B
Strategies I II III
I –2 2 –1
II 1 1 1
III 3 0 1
(iii)
Player A
Player B
Strategies I II III IV
I 10 0 7 4
II 2 6 4 7
III 5 2 3 8
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