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TRANSITION HEADLINE
Let’s start with the first set of slides
2
UNIVERSITY of mysore
, SumaM M
2 nd mcom
G F G C W
HN pura.
Presentedby,
3
Subject:
Operation research
GAME THEORY
Topic:
problemonDominanceprinciple
“
Dominance principles
5
Dominance principle is also
applicable to pure strategy and
mixed problems. In pure
strategy the solution is
obtained by itself while in
mixed strategy it can be used
for simplifying the problem.
6
1. The principle of dominance states that If the
strategy of a player dominates over the other Strategy
in all conditions than the later strategy is ignored
because it will not effect the solution is any way.For
the gainer point of view if a strategy gives more gain
than the another strategy, then first strategy dominate
over the other and the second strategy can be ignored
altogether.
Principle Of Dominance:
7
2. Similarly from loser point of view, if a strategy involves
lesser loss than other in all condition than second can be
ignored.So determination of superior or inferior strategy
is based upon the objective of the player.Since each
player is to select best strategy, the inferior strategies
can be eliminated.
Steps Of Principle Of Dominance:
8
Step1:
Compare two rows and eliminate or delete the row
which is having elements less than or equal to other row
Step2:
Compare two columns with each other,the column
with least or equal elements will be kept and other
columns will be deleted.
9
These steps will be repeated till we
reach to (2*2) matrix and then we will apply
saddle point or odds methods to find the
value of game.
10
Example problem Of Dominance Principle.
Firm A
firm B
B1 B2 B3 B4
A1 35 65 25 5
A2 30 20 15 0
A3 40 50 0 10
A4 55 60 10 15
Problem
11
Solution:
Step1: Row 2nd is less than row 1st.So row 2nd is
dominant or deleted
35 65 25 5
40 50 0 10
55 60 10 15
Step2: Column 2nd is greater than the column 1st
and now column 2nd will be deleted.
35 25 5
40 0 10
55 10 15
12
Step3: Again we will compare 2nd & 3rd row and than
row 2nd is less than the row 3rd & row 2nd is dominant,so it
will deleted.
35 25 5
55 10 15
Step4: Again we will compare the column 1st and 2nd and
now the column 1st us greater than the 2nd ,so it will be
deleted.
25 5
10 15
13
Now if saddle point is not occur we will apply the
ODD’S FORMULA to find out dominance principle
Q1 Q2
B3 B4
P1 A1 a b
P2 A4 c d
Player B
Player A
V=ad-bc/(a-b)+(d-c)
a=25
b=5
c=10
d=15
14
After applying the odd formula, we will get:
=25*15-10*5/20+5
=375-50/25
=325/25
=13
Strategies for every player:
1. p1=d-c/(a-b)+(d-c)
=5/20+5
=5/25
=1/5
15
2.p2=a-b/(a-b)+(d-c)
=20/20+5
=20/25
=4/5
3.q1=d-b/(a-b)+(d-c)
=10/20+5
=10/25
=2/5
4.q2=a-c/(a-b)+(d-c)
=15/20+5
=15/25
=3/5
.
.
16
Reference:
• http://www.universalteacher
publications.com.
• https://cbom.atozmath.com
• https://study.com
THANKS!

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Game Theory - Dominance Strategy

  • 1. INSTRUCTIONS FOR USE EDIT IN GOOGLE SLIDES Click on the button under the presentation preview that says "Use as Google Slides Theme". You will get a copy of this document on your Google Drive and will be able to edit, add or delete slides. You have to be signed in to your Google account. EDIT IN POWERPOINT® Click on the button under the presentation preview that says "Download as PowerPoint template". You will get a .pptx file that you can edit in PowerPoint. Remember to download and install the fonts used in this presentation (you’ll find the links to the font files needed in the Presentation design slide) More info on how to use this template at www.slidescarnival.com/help-use-presentation-template This template is free to use under Creative Commons Attribution license. You can keep the Credits slide or mention SlidesCarnival and other resources used in a slide footer. 1
  • 2. 1. TRANSITION HEADLINE Let’s start with the first set of slides 2 UNIVERSITY of mysore , SumaM M 2 nd mcom G F G C W HN pura. Presentedby,
  • 5. “ Dominance principles 5 Dominance principle is also applicable to pure strategy and mixed problems. In pure strategy the solution is obtained by itself while in mixed strategy it can be used for simplifying the problem.
  • 6. 6 1. The principle of dominance states that If the strategy of a player dominates over the other Strategy in all conditions than the later strategy is ignored because it will not effect the solution is any way.For the gainer point of view if a strategy gives more gain than the another strategy, then first strategy dominate over the other and the second strategy can be ignored altogether. Principle Of Dominance:
  • 7. 7 2. Similarly from loser point of view, if a strategy involves lesser loss than other in all condition than second can be ignored.So determination of superior or inferior strategy is based upon the objective of the player.Since each player is to select best strategy, the inferior strategies can be eliminated.
  • 8. Steps Of Principle Of Dominance: 8 Step1: Compare two rows and eliminate or delete the row which is having elements less than or equal to other row Step2: Compare two columns with each other,the column with least or equal elements will be kept and other columns will be deleted.
  • 9. 9 These steps will be repeated till we reach to (2*2) matrix and then we will apply saddle point or odds methods to find the value of game.
  • 10. 10 Example problem Of Dominance Principle. Firm A firm B B1 B2 B3 B4 A1 35 65 25 5 A2 30 20 15 0 A3 40 50 0 10 A4 55 60 10 15 Problem
  • 11. 11 Solution: Step1: Row 2nd is less than row 1st.So row 2nd is dominant or deleted 35 65 25 5 40 50 0 10 55 60 10 15 Step2: Column 2nd is greater than the column 1st and now column 2nd will be deleted. 35 25 5 40 0 10 55 10 15
  • 12. 12 Step3: Again we will compare 2nd & 3rd row and than row 2nd is less than the row 3rd & row 2nd is dominant,so it will deleted. 35 25 5 55 10 15 Step4: Again we will compare the column 1st and 2nd and now the column 1st us greater than the 2nd ,so it will be deleted. 25 5 10 15
  • 13. 13 Now if saddle point is not occur we will apply the ODD’S FORMULA to find out dominance principle Q1 Q2 B3 B4 P1 A1 a b P2 A4 c d Player B Player A V=ad-bc/(a-b)+(d-c) a=25 b=5 c=10 d=15
  • 14. 14 After applying the odd formula, we will get: =25*15-10*5/20+5 =375-50/25 =325/25 =13 Strategies for every player: 1. p1=d-c/(a-b)+(d-c) =5/20+5 =5/25 =1/5