The document outlines the steps for solving a pure strategy game. It begins by explaining the key terms like payoff matrix, maximin, and minimax. It then lists the 7 steps to solve a pure strategy game, which include writing the payoff matrix, identifying the maximin and minimax values, finding the saddle point if they are equal, and determining if it is a mixed strategy game if they are unequal. An example game is then provided and solved following the steps. Students are asked to state and explain the steps in the conclusion.

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Unit No.3.
DECISION SCIENCE
Presented By:
Dr. V. M. Tidake
Ph. D (Financial Management), MBA(FM), MBA(HRM) BE(Chem)
Dean, EDP & Associate Professor MBA
1
Sanjivani College of Engineering, Kopargaon
Department of MBA
www.sanjivanimba.org.in

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302-DECISION SCIENCE
Unit No.3. Games Theory
3.2.3 Steps in Pure
Strategy Game
Presented By:
Dr. V. M. Tidake
Ph. D (Financial Management), MBA(FM), MBA(HRM) BE(Chem)
Dean EDP & Associate Professor MBA
2
Sanjivani College of Engineering, Kopargaon
Department of MBA
www.sanjivanimba.org.in

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GAMES THEORY
 At the End of the Session Student will be able to
understand-
A. Steps in Pure Strategy Game.

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Games Theory
Step 1: Write down the pay off matrix with the maximizing player along rows
and minimizing player along columns.
Step 2: Write down the minimum element in each row on its right and Identify
the MAXIMIN amongst them.
Step 3: Write down the maximum element in each column at its bottom and
Identify the MINIMAX amongst them.
Step 4: If these two arrowed elements (i.e. Maximin and Minimax) are same,
then the element lying at the intersection of the corresponding row and column
is called as a ‘Saddle Point’.
Step 5: The strategies corresponding to the saddle point are the optimal
strategies for the two players, while the saddle point is the value of the game.
Step 6: If there are more than one saddle points, then there are more than one
solution, one for each saddle point.
Step 7: If the arrowed elements (maximin or minimax) are not same, then there
is no saddle point and the value of the game lies between these two values. This
is a case of mixed strategy games.

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Games Theory
Solve the Following Pure Strategy Game:
Firm B
Firm A
B1 B2 B3
A1 2 8 4
A2 7 10 6

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Games Theory
Solve the Following Pure Strategy Game:
Firm B
Firm A
B1 B2 B3 Min
A1 2 8 4 2
A2 7 10 6 6 (Maximin)
Max 7 10 6
(Minimax)

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EXERCISE
 State and Explain the steps in Pure Strategy Game.

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For More Details Contact
Dr. V M Tidake
tidkevishal@gmail.com
tidkevishalmba@sanjivani.org.in

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Thank You