Question

consider a modified form of matching biased coins game problem . the matching player is paid Rs.8.00 if the two coins turn both heads and Re.1.00 if the coins turn both tail. the non matching player is paid Rs. 3.00 when the two coins do not match. given the choice of being the matching player, which one would you choose and what would be your strategy.

Answer 1

Answer:

Step-by-step explanation:

The payoff matrix for the matching player is given by

               

                                         non matching player

                                                    H             T

               

        Matching player           H      8            -3

                                               T        -3           1

The payoff matrix does not posses any saddle point. The player will used mixed strategies. Optimum strategies for matching players and non matching players are

p₁ = a₂₂ - a₂₁ / a₁₁ + a₂₂ - (a₁₂ + a₂₁)

p₁ = 1 - (-3) /8 + 1 - (-3-3)

p₁= 4/15

q₁ = a₂₂ - a₁₂ / a₁₁ + a₂₂ - ( a₁₂ + a ₂₁)

q₁ = 1-(-3) / 8 + 1 - (-3-3) = 4/15

The expected value of the game

v = a₁₁ a₂₂ - a₁₂ a₂₁ / a₁₁ + a₂₂ - ( a₁₂ + a₂₁ )

v = 8 * 1 - (-3 ) (-3) / 8 + 1 - 1 (-3-3)

= -1/15