SKEDSOFT

Description of game :

 In this game is described as:  A competitive situation is called a game if it has the following characteristics (Assumption made to define a game):

1.There is finite number of competitors called Players. This is to say that the game is played by two or more number of business houses. The game may be for creating new market, or to increase the market share or to increase the competitiveness of the product.

2.A list of finite or infinite number of possible courses of action is available to each player. The list need not be the same for each player. Such a game is said to be in normal form.

Example:

To explain this we can consider two business houses A and B. Suppose the player A has three strategies, as strategy I is to offer a car for the customer who is selected through advertising campaign. Strategy II may be a house at Ooty for the winning customer, and strategy III may a cash prize of Rs. 10,00,000 for the winning customer. This means to say that the competitor A has three strategies or courses of action. Similarly, the player B may have two strategies, for example strategy I is A pleasure trip to America for 10 days and strategy II may be offer to spend with a cricket star for two days. In this game A has three courses of action and B has two courses of actions. The game can be represented by mans of a matrix as shown below:

3.A play is played when each player chooses one of his courses of action. The choices are made simultaneously, so that no player knows his opponent's choice until he has decided his own course of action. But in real world, a player makes the choices after the opponent has announced his course of action. Every play i.e. combination of courses of action is associated with an outcome, known as pay off -matrix For example consider the following matrix:

 Matrix explanation:

•       In the given matrix, we have two players.
•      Among these the player who is named on the left side matrix is known as winner, i.e. here A is the winner and the matrix given is the matrix of the winner.
•      The player named above is known as the loser.
•        The loser’s matrix is the negative version of the given matrix. In the above matrix, which is the matrix of A, a winner, we can describe as follows.
•        If A selects first strategy, and B selects the second strategy, the outcome is 4 i.e. A will get 4 units of money and B loses 4 units of money. i.e. B has to give 4 units of money to A.
•        Suppose A selects second strategy and B selects first strategy A’s outcome is –1, i.e. A loses one unit of money and he has to give that to B, it means B wins one unit of money.