A company management and the labour union are negotiating a new 3 years settlement. Each of these has 4 strategies. -

What strategy will the two sides adopt? Also determine the value of the game. -

Mumbai University > MECH > Sem 7 > Operations Research

Marks: 10 M

Year: Dec 2013

Checking for saddle point:

Maximin value(max. of row minima) = 12

Minimax value (min. of column maxima) = 12

Therefore, a saddle point is present.

Union will adopt strategy I, while company will adopt strategy III.

The value of the game is 12.

Note: ALWAYS check for saddle point first, since the problem becomes simple and can be solved fast. DO NOT jump to the conclusion that saddle point does not exist, since time will get wasted by trying to solve by dominance rules.