IDEAS home Printed from https://ideas.repec.org/a/nwe/natrud/y2021i1p13-47.html
   My bibliography  Save this article

The Analysis of the Payment Matrix in a Game Against a Neutral Opponent

Author

Listed:
  • Georgy Kiranchev

    (University of National and World Economy, Sofia, Bulgaria)

Abstract

The study discusses the topic of playing against a neutral (unreasonable) opponent and evaluating his mixed strategy. The goal is to prove the importance of the emphasis in such games on the analysis of the payment matrix. The task is to demonstrate the possibilities of this analysis in choosing the optimal strategy against a neutral opponent. The methodology of the mathematical proof and the testing of statistical hypotheses were used. It has been proven that it is sufficient for the probabilities to fall within the boundaries within which the conditions for dominance are met. It has been proven that the analysis (of the payment matrix) provides information about the limits within which the empirically obtained probabilities of the states are reliable estimates of the real probabilities. The sources for obtaining the mixed strategy of the player are evaluated. The use of analytically obtained limits for estimating empirically obtained probabilities with the tools for testing statistical hypotheses is considered. The approach is recommended when choosing a strategy in situations where changing the strategy afterwards is either impossible or too expensive. The proposed analysis has a high practical utility for all persons making strategic decisions in the conditions of a game against a neutral opponent. The conclusion is that only on the basis of this analysis can an optimal strategy be selected, insensitive to the inaccuracy of the mixed strategy of the opponent.

Suggested Citation

  • Georgy Kiranchev, 2021. "The Analysis of the Payment Matrix in a Game Against a Neutral Opponent," Nauchni trudove, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 13-47, February.
  • Handle: RePEc:nwe:natrud:y:2021:i:1:p:13-47
    as

    Download full text from publisher

    File URL: http://unwe-research-papers.org/bg/journalissues/article/10348
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    game theory; games; mixed strategy; optimal strategy;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nwe:natrud:y:2021:i:1:p:13-47. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vanya Lazarova (email available below). General contact details of provider: https://edirc.repec.org/data/unweebg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.