Two player game, Decision alternatives
Not what you're looking for?
1. Here is the description of a two player game. Player A selects a, b, or c. Player B selects i, ii, or iii.
Player B
i ii iii
a 5 7 2
Player A b 4 8 5
c 6 4 3
Payoffs are to Player A. This is a zero sum game.
a. Indicate any dominated strategies and restate the game appropriately
b. Determine the optimal strategies for the players
c. What is the value of the game?
---------
2. You are the general manager of Keystone Chemicals Houston plant. Following a recent visit by corporate officials, you have received a memo directing you to upgrade plant security. The memo requires you upgrade protection in three areas:
1. Protection against forced entry and theft/destruction (F)
2. Protection against entry by subterfuge and theft (S)
3. Protection of trade secrets and proprietary information (T)
The memo also cautions that any measures taken must be carefully evaluated for their cost-effectiveness (C).
After careful research, you have determined that there are three responses that could satisfactorily address the mandate you have received. Each addresses the three areas differently and each has a different cost. The three responses are:
1. Improve the electronic surveillance at the plant (El)
2. Hire a security service for foot and K-9 patrols. (Out)
3. Improve in-house security staffing (personnel levels and training). (In)
You have rated the alternative responses in terms of how well they address the areas of concern and their cost. You have assigned the weights (suggesting relative strength of concern) to the areas and the cost. The table summarizing what you have done follows.
Weights -> 3 3 4 6
C F S T
El 7 2 8 5
Out 6 7 5 3
In 5 6 7 5
a. Which choice is indicated by his ratings?
b. Is an alternative dominated? why?
c. What is the weight for S that will produce indifference between the two top ranked choices? Write the algebraic expression and solve it.
----------
4. Ace Venture Capital (AVC) has a million dollars to invest. It is considering two proposals. One proposal is to invest with the operator of retail shoe stores. The investment will produce a majority stake in a corporation that owns three retail outlets. These will be managed by the entrepreneur who is also investing $1 million in the corporation. The other proposal is to invest in a software company that provides learning space on the internet for Universities that provide on-line education. After evaluating both business plans the projected performance of each alternative investment (% returns to AVC) is seen to depend on the state of the economy over the next 5 years. This information is summarized in the following table.
Strong Economic Growth Modest Economic Growth
Shoes 17% 13%
Software 25% 8%
Taking the position of AVC,
a. If you are uncertain about the future state of the economy, which alternative should be chosen?
b. What probability of Strong Economic Growth makes you indifferent between the investments?
c. Stated as a percentage, what would you be willing to pay for perfect information about the future growth
Purchase this Solution
Solution Summary
Answers questions on two player game, decisions.
Solution Preview
See attached files (either of them)
1. Here is the description of a two player game. Player A selects a, b, or c. Player B selects i, ii, or iii.
Player B
i ii iii
a 5 7 2
Player A b 4 8 5
c 6 4 3
Payoffs are to Player A. This is a zero sum game.
a. Indicate any dominated strategies and restate the game appropriately
b. Determine the optimal strategies for the players
c. What is the value of the game?
2. You are the general manager of Keystone Chemicals Houston plant. Following a recent visit by corporate officials, you have received a memo directing you to upgrade plant security. The memo requires you upgrade protection in three areas:
1. Protection against forced entry and theft/destruction (F)
2. Protection against entry by subterfuge and theft (S)
3. Protection of trade secrets and proprietary information (T)
The memo also cautions that any measures taken must be carefully evaluated for their cost-effectiveness (C).
After careful research, you have determined that there are three responses that could satisfactorily address the mandate you have received. Each addresses the three areas differently and each has a different cost. The three responses are:
1. Improve the electronic surveillance at the plant (El)
2. Hire a security service for foot and K-9 patrols. (Out)
3. Improve in-house security staffing (personnel levels and training). (In)
You have rated the alternative responses in terms of how well they address the areas of concern and their cost. You have assigned the weights (suggesting relative strength of concern) to the areas and the cost. The table summarizing what you have done follows.
Weights -> 3 3 4 6
C F S T
El 7 2 8 5
Out 6 7 5 3
In 5 6 7 5
a. Which choice is indicated by his ratings?
b. Is an alternative dominated? why?
c. What is the weight for S that will produce indifference between the two top ranked choices? Write the algebraic expression and solve it.
1. Here is the description of a two player game. Player A selects a, b, or c. Player B selects i, ii, or iii.
Player B
i ii iii
a 5 7 2
Player A b 4 8 5
c 6 4 3
Payoffs are to Player A. This is a zero sum game.
a. Indicate any dominated strategies and restate the game appropriately
b. Determine the optimal strategies for the players
c. What is the value of the game?
a. Indicate any dominated strategies and restate the game appropriately
If we observe ii and iii
ii iii
7 > 2
8 > 5
4 > 3
Thus player B will always choose iii over ii as it would mean smaller payoff to A
Thus ii is dominated strategy
Thus the game can be reststed ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Operations Management
This quiz tests a student's knowledge about Operations Management
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.