Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2014/iii/paper-37/4/c/solution

Introduce nonnegative surplus variables
At the proposed starting basic feasible solution, the basic variables are and the nonbasic variables are . Its simplex dictionary, with objective , is
Increase to decrease . The simplex ratio test gives limits from , from , and from . The smallest is , so enters and leaves. After this single pivot the dictionary is
All objective coefficients of nonbasic variables are strictly positive. Thus the simplex method has reached its unique optimum:
The feasible dual vector has the same objective, providing an independent weak duality certificate. Normalization gives
These are all the equilibria: the dual's strict slack in row two forces , and the primal's strict slack in column two forces . Equality of the two active row and column payoffs then fixes the displayed probabilities. The value is the first player's expected net loss; the second gains .

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