Standard conventions in game theory, Managerial Accounting

Standard conventions in Game Theory

Consider the following table as shown below:

2006_table.jpg


X plays row I, Y plays Column I, X wins 3 points
X plays row I, Y plays Column II, X loses 4 points
X plays row II, Y plays Column I, X loses 2 points

X plays row II, Y plays Column II, X wins 1 points

3, -4, -2, 1 are the known pay offs to X (X takes precedence over Y)

Here the game has been represented in the form of a matrix. When the games are expressed in this fashion the resulting matrix is commonly known as PAYOFF MATRIX.

Strategy: It refers to a total pattern of choices employed by any player.  Strategy could be pure or a mixed one.

In a pure strategy, Player X will play one row all of the time or player Y will also play one of his columns all the time.

In a mixed strategy, Player X will play each of his rows a certain portion of the time and player Y will play each of his columns a certain portion of the time.

Value of the Game: The value of the game refers to the average pay off per play of the game over an extended period of time.

Posted Date: 12/8/2012 3:04:01 AM | Location : United States







Related Discussions:- Standard conventions in game theory, Assignment Help, Ask Question on Standard conventions in game theory, Get Answer, Expert's Help, Standard conventions in game theory Discussions

Write discussion on Standard conventions in game theory
Your posts are moderated
Related Questions
accounting process or accounting cycle

Describe Committed fixed costs Committed fixed costs are those fixed costs that arise from the possession of 1. Plant, building and equipment (for example, depreciation, re

Difference between managerial accounting and financial accounting are mentioned below Audience – Internal Vs External Format of Reporting – Free format Vs prescribed

Advantages of Simulation 1) It can be used in areas where analytical techniques are not available or would be too complex. 2) Constructing the model inevitably must involve

How can we draw a break even chart Under this method the variable cost line is drawn first and then fixed cost line is drawn over and parallel to the variable cost line. The fi

Graphic method of break even analysis or break even chart The break even point can also be computed graphically. A break even chart is a graphical representation of marginal co

Illustrate the General Design of Waste heat boilers The boiler system shall be made up of a fire tube type heat exchanger, a steam drum with relief valve internals, risers and

Consider the following quality data for three different manufacturers of automobile weather-strips: Weather-strip Bulb Dimension Specification y=20 +or- 4mm

Determine the Functions of management accounting: 1. Planning and forecasting: management fixes various targets to be achieved by the business in near future. Planning and fo

Accounting Method is the method by which income and expenses are accounted for taxation purposes. The Internal Revenue Service needs taxpayers to select an accounting method that p