Quantitative Analysis for Management, 13/e

Solved Problems

1. Solved Problem M4-1 George Massic (player X) faces the following game. Using dominance, reduce the size of the game, if possible.

   $Y_1$	$Y_2$
   $X_1$	6	5
   $X_2$	20	23
   $X_3$	15	11

   Solution

   After carefully analyzing the game, George realizes that he will never play strategy $X_1$. The best outcome for this strategy (6) is worse than the worst outcome for the other two strategies. In addition, George would never play strategy $X_3,$ for the same reason. Thus, George will always play strategy $X_2.$ Given this situation, player Y would always play strategy $Y_1$ to minimize her losses. This is a pure strategy game with George playing $X_2$ and person Y playing strategy $Y_1.$ The value of the game for this problem is the outcome of these two strategies, ...