Write down the pay-off matrix
M=(−241−1) Each entry is the row player's gain; the row player picks a row and the column player picks a column.
Compare the maximin and the minimax
imaxjminMij=−1<1=jminimaxMij They differ, so the game has no saddle point and mixed strategies are needed.
Let the row player mix over the surviving rows
P(row 1)=p,P(row 2)=1−p The row player plays row 1 with probability p and row 2 with probability 1−p.
Write the row player's expected pay-off against each column
vs col 1: −2p+4(1−p)vs col 2: p−(1−p) Against column 1 the entries are -2 and 4; against column 2 they are 1 and -1.
Set the two expected pay-offs equal and solve for p
−2p+4(1−p)=p−(1−p) ⇒ p=−8−5=85 Equalising the pay-off against the two columns makes the column player indifferent, which is what an optimal mix does.
Compute the value of the game
V=−2p+4(1−p)=−8−2=41 Substituting the optimal p into the expected pay-off gives the value of the game.
Recall the pay-off convention
Mij=row player’s gain when row i meets column j By convention the matrix records the row player's gains, so the column player's gains are the negatives of these numbers.
Recall the maximin principle
row player secures imaxjminMij Choosing the row with the greatest row minimum guarantees the row player at least the maximin, whatever the column player does.
Recall the minimax principle
column player limits loss to jminimaxMij Choosing the column with the least column maximum caps the column player's loss at the minimax.
Recall the stability criterion
stable⟺imaxjminMij=jminimaxMij A saddle point exists exactly when the maximin equals the minimax.
Recall the minimax theorem
every finite zero-sum game has a value Once mixed strategies are allowed the maximin equals the minimax, and this common number is the value of the game.
Note that the players' interests are opposed
row player maximises, column player minimises A single matrix suffices because one player's gain is the other's loss.
Recall the definition of a dominated row
row s dominated⟺∃r: Mrj≥Msj ∀j A dominated row is never strictly better for the row player and may be deleted.
Recall the definition of a dominated column
column t dominated⟺∃u: Miu≤Mit ∀i A dominated column is never strictly better for the column player and may be deleted.
Note that deleting a dominated strategy leaves the value unchanged
V(reduced)=V(original) An optimal strategy never places any weight on a dominated row or column.
Recall how a mixed strategy is described
a probability distribution over the pure strategies Each pure strategy is played with some probability and the probabilities sum to one.
Select the value of the game
V=−8−2=41 Only this value equalises the expected pay-off against each of the opponent's pure strategies.