Dominance, Managerial Accounting

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DOMINANCE

Dominance strategy is useful for reducing the size of the payoff table.

Rules of Dominance:

1) If all the elements in a column are greater than or equal to the corresponding elements in another column, then the column is dominated.

2) Similarly, if all the elements in a row are less than or equal to the corresponding elements in another row, then the tow is dominated.

3) Dominated rows and columns may be deleted which reduces the size of the game.

Note:   
Always look for dominance and saddle point when solving a game.


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