ABSTRACT

This chapter explains the various methods for solving zero-sum games. Some of these games are solved by the dominance method and minimax method, and other games are solved by matrix method and the simplex method. The main objective of game theory is to provide a recommendation for a decision maker to select the optimal strategy in situations of conflict. This chapter states that if the saddle point does not exist, games do not have pure strategy. It shows how a game model is formulated. This interpretation suggests that the first element in each cell reflects gain to the row player, and the second element of that cell reflects gain to the column player. In non-zero sum games, the gain of player I does not equal the loss of player II. This game is called the prisoner's dilemma because it describes a situation where two prisoners are questioned separately.