ABSTRACT
The game theory has taken its importance in the business management in 1944, when Von Neumann published “Theory and practice of Games and Economic Behaviour”. Games can be classified into different categories such as: Two Person Games and Multi-person Game. A game with only two persons with a condition that the loss of one player is gain of the other and vice-versa (so that total sum is zero) is said to be two-person zero-sum game or rectangular game. The dominance principle is used to reduce the order of the pay off matrix. Thus if saddle points exist, the matrix can be reduced to a matrix with one element which is equal to value of the game. In certain cases, no pure strategy solutions exist for the game. In other words, saddle points do not exist. In all such game, both players may adopt an optimal blend of the strategies called Mixed strategy to find a saddle (equilibrium) point.
