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 …