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Teaching the applications of optimisation in game theory's zero sum and non-zero sum games

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Author
Fox, William P.
Date
2010
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Abstract
We apply linear and non-linear programming to find the solutions for Nash equilibriums and Nash arbitration in game theory problems . Linear programming was shown as a viable method for solving mixed strategy zero-sum games. We review this methodology and suggest a class of zero-sum game theory problems that are well suited for linear programming. We applied this theory of linear programming to non-zero sum games. We suggest and apply a separate formulation for a maximising linear programming problem for each player. We move on the Nash arbitration method and remodel this problem as a non-linear optimisation problem. We take the game's payoff matrix and we form a convex polygon. Having found the status quo point (x*, y*), we maximise the product (x - x*)(y - y*) over the convex polygon using KTC non-linear optimisation techniques. The results give additional insights into game theory analysis.
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
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http://hdl.handle.net/10945/62010
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