Game Theory 2x2 Matrix: Finding Optimal Strategy for (-3,-4), (-7,2)

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SUMMARY

The discussion centers on solving a 2x2 matrix game using game theory principles, specifically for the payoff matrix {(-3,-4),(-7,2)}. The user initially calculated the expected values E((x,1-x),1) and E((x,1-x),2) using dot products, arriving at x=9/10 and y=1/10. However, the correct optimal strategy x* is (6/10,4/10), indicating a misinterpretation of the payoff structure. The user also highlights confusion regarding the arrangement of the payoff matrix, which is crucial for accurate calculations.

PREREQUISITES
  • Understanding of 2x2 matrix games in game theory
  • Familiarity with expected value calculations
  • Knowledge of dot product operations in linear algebra
  • Basic concepts of evolutionary biology related to game theory
NEXT STEPS
  • Study the construction and interpretation of payoff matrices in game theory
  • Learn how to derive mixed strategies in 2x2 games
  • Explore the concept of Nash Equilibrium in game theory
  • Review linear algebra techniques, particularly dot products and their applications
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Students of game theory, mathematicians, and anyone interested in applying game theory concepts to real-world scenarios, particularly in economics and evolutionary biology.

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Homework Statement



{(-3,-4),(-7,2)} Find the value of the game (basically saying find x*)

Homework Equations



E((x,1-x), 1)=E((x,1-x),2))

The Attempt at a Solution



Basically I used dot product of (x,1-x) and column 1 (-3,-7). I got 4x-7 for that, which is my E((x,1-x). Then I found the dot product of (x,1-x) and column 2 (-4,2) and got -6x+2, which is my E((x,1-x),2)). Set them equal to each other to get my x, and got x=9/10. My Y is 1-x, which is 1/10. Therefore my x*=(9/10,1/10). The back of the book says my x* is (6/10,4/10), so I don't know what the hell I did wrong. I hate this class.
 
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You've mixed up the columns and rows.

I've not studied game theory per se, but in evolutionary biology, I've come across it. There the tables are typically constructed in the way that the profit is to the player in the left column i.e.
_H D
H -3 -4
D -7 2
Meaning that if a H plays a D, H will get -4, and the D will get -7. If everyone plays H with probability p (and thus D with probability 1-p), suppose you play H, the expected winnings are:
W(H) = -3p + (-4)(1-p)
and should you opt for D:
W(D) = -7p + 2(1-p)

Now W(H) and W(D) should be equal and you get the answer you were looking for.
 

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