Solution of a Satisficing Model for Random Payoff Games

In this paper, we consider a "satisficing" criterion to solve two-person zero-sum games with random payoffs. In particular, a player wants to maximize the payoff level he can achieve with a specified confidence. The problem reduces to solving a nonconvex mathematical programming problem. T...

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Bibliographic Details
Published inManagement science Vol. 19; no. 3; pp. 266 - 271
Main Authors Cassidy, R. G, Field, C. A, Kirby, M. J. L
Format Journal Article
LanguageEnglish
Published Hanover, MD., etc INFORMS 01.11.1972
Institute of Management Sciences
Institute for Operations Research and the Management Sciences
SeriesManagement Science
Subjects
Algorithms
Distribution functions
Expected values
Game theory
Games
Marketing
Mathematical programming
Mixed strategy
Optimal strategies
Payoff matrix
Random variables
Roots of functions
Utility functions
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Summary:In this paper, we consider a "satisficing" criterion to solve two-person zero-sum games with random payoffs. In particular, a player wants to maximize the payoff level he can achieve with a specified confidence. The problem reduces to solving a nonconvex mathematical programming problem. The main result shows that solving this problem is equivalent to finding the root of an equation whose values are determined by solving a linear problem. This linear problem results from maximizing the confidence with fixed payoff level.
ISSN:0025-1909
1526-5501
DOI:10.1287/mnsc.19.3.266