Quantitative Analysis for Management, 13/e

Module 4 Game Theory

Learning Objectives

After completing this module, students will be able to:

1. M4.1 Understand the principles of two-person, zero-sum games.

2. M4.2 Understand the minimax criterion as well as the upper and lower values of a game.

3. M4.3 Solve pure strategy games when there is a saddle point.

4. M4.4 Solve mixed strategy games when there is no saddle point.

5. M4.5 Understand the concept of dominance to reduce the size of the game.

As discussed in Chapter 1, competition can be an important decision-making factor. The strategies taken by other organizations or individuals can dramatically affect the outcome of our decisions. In the automobile industry, for example, the strategies of competitors to introduce certain models with ...