The BiMatrixGame.lng Model

Two-Person Nonconstant Sum Game

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How much profit player A makes depends upon both
the choice made by Player A and the choice made by
Player B. Here we do not assume that the results
are zero sum. I.e., we do not assume that any
increase in profit for A corresponds to a decrease
in profit for B of exactly same amount.
This non-constant sum feature is common in
decisions involving pricing, advertising,
military actions, etc.;

This version uses complementarity constraints, so
the global solver option should be used. Click on:

LINGO | Options | Global solver | Use Global solver

Keywords:

Complementarity Constraints | Game Theory | Two person game | Bi-matrix game | Mixed strategy | Non-constant sum game | Prisoner's dilemma |