Bimatrix game

 ( Game Theory Game Classes ) 

$\backslash begin\{array\}\{c$		c} & X & Y & Z \\ \hline V & c,p & d,q & e,r \\ W & f,s & g,t & h,u \\ \end{array} A payoff matrix converted from A and B where player 1 has two possible actions V and W and player 2 has actions X, Y and Z

In game theory, a bimatrix game is a simultaneous game for two players in which each player has a finite number of possible actions. The name comes from the fact that the Normal-form game of such a game can be described by two matrices - matrix $A$ describing the payoffs of player 1 and matrix $B$ describing the payoffs of player 2.

Player 1 is often called the "row player" and player 2 the "column player". If player 1 has $m$ possible actions and player 2 has $n$ possible actions, then each of the two matrices has $m$ rows by $n$ columns. When the row player selects the $i$-th action and the column player selects the $j$-th action, the payoff to the row player is $Ai,j$ and the payoff to the column player is $Bi,j$.

The players can also play mixed strategies. A mixed strategy for the row player is a non-negative vector $x$ of length $m$ such that: $\backslash sum\_\{i=1\}^m\; x\_i\; =\; 1$. Similarly, a mixed strategy for the column player is a non-negative vector $y$ of length $n$ such that: $\backslash sum\_\{j=1\}^n\; y\_j\; =\; 1$. When the players play mixed strategies with vectors $x$ and $y$, the expected payoff of the row player is: $x^\backslash mathsf\{T\}\; A\; y$ and of the column player: $x^\backslash mathsf\{T\}\; B\; y$.

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Nash equilibrium in bimatrix games Every bimatrix game has a Nash equilibrium in (possibly) mixed strategies. Finding such a Nash equilibrium is a special case of the Linear complementarity problem and can be done in finite time by the Lemke–Howson algorithm.

There is a reduction from the problem of finding a Nash equilibrium in a bimatrix game to the problem of finding a competitive equilibrium in an economy with Leontief utilities.

(2025). 9780898716054 ISBN 9780898716054

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Related terms A zero-sum game is a special case of a bimatrix game in which $A+B\; =\; 0$.

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