24. The following paY-off matrix describes increase in sales of Firm A from each of its strategies A 1, A2, A3, and A4 against each of the strategies B1, B2, B3 and B4 of the rival Firm B.

Assuming a zero-sum game, show that no optimal strategy-mix exists in pure strategies irrespective of whether we use the principle of dominance or that of maximin and minimax. The game, however, has a solution in mixed strategies but not without the aid of the principle of dominance. Solve the game and find its value.

Transcribed Image Text:

Firm B B B B3 B4 A 43 43 33 13 Firm A 42 38 28 23 8 A 48 58 8 18 A4 63 68 18 23