MGMT 1050 Quiz: stats book summary notes pt2
Document Summary
We presented an introduction to game theory by describing how to solve two- person, zero-sum games. In these games, the two players end up with the sum of the gain (loss) to one player and the loss (gain) to the other player always equal to zero. We described the steps that can be used to determine whether a two- person, zero-sum game results in an optimal pure strategy. If a pure strategy is optimal, a saddle point determines the value of the game. If an optimal pure strategy does not exist for a two-person, zero-sum 2 2 game, we showed how to identify an optimal mixed strategy. With a mixed strategy, each player uses probability to select a strategy for each play of the game. We showed how dominance could be used to reduce the size of mixed strategy games.
