Question

In: Economics

Provide an example of a strictly competitive game that is not a zero-sum game.

Provide an example of a strictly competitive game that is not a zero-sum game.

Solutions

Expert Solution

Example -

In the below example there is a couple who wants to go on a night out. The boy wants to go to the club and the girl wants to go for movie . Both prefer to go together rather than going alone. While the boy prefers to go to the club, he would prefer to go with his girl to the movie theatre rather than go to the club alone. Similarly, the girl would prefer to go to the movie, but she too would rather go to the club with her guy than go to the movie alone. Below matrix shows the game :

BOY
CLUB MOVIE
GIRL CLUB 2,3 1,1
GIRL MOVIE 1,1 3,2

The girl's payoff matrix is represented by the first element of the ordered pair while the girl's payoff matrix is represented by the second of the ordered pair.

The above matrix shows that the situation represents a non-zero-sum, non-strictly competitive conflict as the common interest between the couple is that no single person from these two would prefer to go alone to club or movie , they would like to be together .However, the opposing interests is that thegirlprefers to go to the movie while her guyprefers to go to the club.

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