A fuzzy approach to the 2 × 2 games and an analysis of the game of chicken

Abstract

A fuzzy approach which is useful to arrive at a solution of 2 × 2 strategic games has been recently introduced in [13]. In this, a player is given an option to construct a fuzzy set over his opponent's strategic space in order to represent his beliefs about his opponent's strategic choice and also he is allowed to optimize a number of goals simultaneously in the game. The existing method of analyzing this fuzzy approach is found to be very tedious. This present paper utilizes the expected value of a fuzzy variable in order to achieve the optimal strategies in the game. It is shown that a table look up procedure can be developed for the solution of 2 × 2 games. The Game of Chicken, with general payoff parameters, has been fully analyzed using this method and simulation studies reveal that the new method improves the quality of the optimal decision achieved.