Click here to load reader
Upload
sarang-dani
View
45
Download
0
Embed Size (px)
Citation preview
Question # 1
Newspaper Radio Television Digital Marketing
Newspaper 3 2 4 0
Radio 3 4 2 4
Television 4 2 4 0
Digital Marketing 0 4 0 9
Strategy of Flipkart
Stra
tegy
of
Am
azo
n
Reduce the game to 2x2 order and obtain strategies for each player and value of the game.
Prepared by Prof. Sarang 1
Step I: Check for saddle point (after every reduction by dominance repeat this step)
Row Minima
Newspaper Radio Television Digital Marketing
Newspaper 3 2 4 0 0
Radio 3 4 2 4 2
Television 4 2 4 0 0
Digital Marketing 0 4 0 9 0
Column Maxima 4 4 4 9
Stra
tegy
of
Am
azo
n Strategy of Flipkart
Prepared by Prof. Sarang 2
Newspaper Radio Television Digital Marketing
Newspaper 3 2 4 0
Radio 3 4 2 4
Television 4 2 4 0
Digital Marketing 0 4 0 9
Compare row 1 and 3, first row is dominated by third and hence eliminated
No saddle point after reduction
Stra
tegy
of
Am
azo
n Strategy of Flipkart
Step II: Use the principle of dominance(Delete row having minimum value in compared row and Deletecolumn having greater value in compared column)
Prepared by Prof. Sarang 3
Newspaper Radio Television Digital Marketing
Radio 3 4 2 4
Television 4 2 4 0
Digital Marketing 0 4 0 9
Compare column 1 and 3, by dominance
No Saddle point after reduction
Strategy of Flipkart
Stra
tegy
of
Am
azo
n
Step III: Use the principle of dominance(Delete row having minimum value in compared row and Deletecolumn having greater value in compared column)
Prepared by Prof. Sarang 4
Radio Television Digital Marketing
Radio 4 2 4
Television 2 4 0
Digital Marketing 4 0 9
Compare column 1 and combination of 2 and 3 by dominance, remove column 1
No Saddle point after reduction
Stra
tegy
of
Am
azo
n Strategy of Flipkart
Step IV: Use the principle of dominance(Dominance by a convex linear combination of column 2 and 3{simple average of the values}
Prepared by Prof. Sarang 5
Television Digital Marketing
Radio 2 4
Television 4 0
Digital Marketing 0 9
Compare row 1 and combination of 2 and 3 by dominance, remove row 1
No Saddle point after reduction
Stra
tegy
of
Am
azo
n
Strategy of Flipkart
Step V: Use the principle of dominance(Delete row having minimum value in compared row and Deletecolumn having greater value in compared column)
Prepared by Prof. Sarang 6
Television Digital Marketing
Television 4 0
Digital Marketing 0 9
x=9-0/(4+9)-(0+0)
x=9/13
y=9-0/(4+9)-(0-0)
y=9/13
Value of the Game
V=4x9 -0x0/(4+9) -(0-0)
V=36/13
Stra
tegy
of A
maz
on
Strategy of Flipkart
Step VI: For mix strategy ,calculate the probability forevery player and value of the game.
Prepared by Prof. Sarang 7