Abstract
The aim of this paper is to develop a new methodology for solving bimatrix games with payoffs of triangular intuitionistic fuzzy numbers (TIFNs), which are called TIFN bimatrix games for short. In this methodology, we define the concepts of the value-index and ambiguity-index and hereby develop a difference-index based ranking method, which is proven to be a total order. The parameterized bilinear programming models are derived from a pair of auxiliary TIFN mathematical programming models, which are used to determine solutions of TIFN bimatrix games. Validity and applicability of the models and method proposed in this paper are illustrated with a practical example.
Introduction
In many real-life game problems, players are not able to evaluate exactly the outcomes of games due to the lack of information or imprecise information. In order to make bimatrix game theory more applicable to real competitive decision problems, the fuzzy set [13] was introduced to describe imprecise and uncertain information appearing in bimatrix problems. Using the ranking method of fuzzy numbers, Vidyottama et al. [19] studied the bimatrix games with fuzzy goals and fuzzy payoffs. Using the possibility measure of fuzzy numbers, Meada [17] introduced two concepts of equilibrium for the bimatrix games with fuzzy payoffs. Bector and Chandra [1] studied bimatrix games with fuzzy payoffs and fuzzy goals based on some duality of fuzzy linear programming. Larbani [14] proposed an approach to solve fuzzy bimatrix games based on the idea of introducing “nature” player in fuzzy multi-attribute decision making problems. However, the intuitionistic fuzzy set (IFS) by adding a non-membership function seems to be suitable for expressing more abundant information [12]. Triangular intuitionistic fuzzy numbers (TIFNs) are special cases of IFSs defined on the set of real numbers, which may easily deal with ill-known information or quantities. TIFNs play an important role in fuzzy decision making [7, 21].
This paper will apply the TIFNs to deal with imprecise information in bimatrix game problems, which are called TIFN bimatrix games for short. Obviously, TIFN bimatrix games remarkably differ from ordinary fuzzy bimatrix games since the former uses both membership and non-membership degrees to express the payoffs while the latter only uses membership degrees to express the payoffs. So the ordinary models and methods of fuzzy bimatrix games cannot be directly used to solve TIFN bimatrix games. In order to solve TIFN matrix games, the order relation of TIFNs is necessarily, and ranking TIFNs is difficult in nature [2, 18]. Thus, we propose a difference-index based ranking method of TIFNs based on the concept of value-index and ambiguity-index in this paper. The ranking method with two-index can aggregate both value and ambiguity. And it can take into consideration the subjective attitude of the players adequately. Besides, the ranking method satisfies the most properties proposed by Wang and Kerre [20], which serve as the reasonable for the ordering of fuzzy quantities. Especially, this method has a natural appealing feature, i.e., the linearity, which can be easily applied to real game problems. Further, we derive a pair of parameterized bilinear programming models from the auxiliary mathematical programming models of TIFN bimatrix games.
The rest of this paper is organized as follows. Section 2 establishes a new order relation of TIFNs based on the concepts of value-index and ambiguity-index. Section 3 formulates TIFN bimatrix games and proposes corresponding methodology based on the constructed auxiliary parametric bilinear programming model. In Section 4, the proposed model and method are illustrated with a real example of the commerce retailers’ strategy choice problem. Conclusion is given in Section 5.
TIFNs and cut sets
The definition of TIFNs
How to express an ill-known quantity using the IFS is very important in game modeling. Inspired by the concept of the fuzzy number [8], an intuitionistic fuzzy number is defined as a special IFS on the real number set R, whose membership function and non-membership function should satisfy the four conditions (1–4) as follows [2, 10]: There exist at least a real numbers such that and ; is quasi convex and upper semi-continuous on R; is quasi convex and lower semi-continuous on R; The support sets and are bounded.
From the above definition of an intuitionistic fuzzy number, we can easily construct a TIFN , depicted as in Fig. 1, whose membership and non-membership functions are given as follows:
Let , which is called the index of an element x in the intuitionistic fuzzy number . It is the degree of indeterminacy membership of the element x to .
If , then is called the non-negative TIFN, denoted by . Conversely, if , then is called the non-positive TIFN, denoted by . Further, is called the positive TIFN if and , denoted by . Likewise, is called the negative TIFN if and , denoted by .
Generally, arithmetic operations of TIFNs can be derived from the extension principle of IFSs [4, 7]. In the following, we discuss the addition and scalar multiplication of TIFNs based on the concept of cut sets [13].
For any α ∈ [0, 1], a α-cut set of a TIFN can be expressed as a crisp subset of R, denoted by . According to the definition of the TIFN, it can be easily seen that is a closed interval, denoted by . It directly follows from Equation (1) that
Likewise, for any β ∈ [0, 1], a β-cut set of a TIFN can be expressed as a crisp subset of R, denoted by . Obviously, is a closed interval, denoted by . It is directly derived from Equation (2) that
According to the arithmetic operations of intervals and the above concept of cut sets of TIFNs, we can define the addition and scalar multiplication of TIFNs.
Specifically, for any TIF and , the sum of and is defined as a TIFN , whose α-cut set and β-cut set are given as follows:
The scalar multiplication of and any real number ρ is defined as a TIFN , whose α-cut set and β-cut set are given as follows:
The value-index and ambiguity-indexof a TIFN
For any TIFN , its values of the membership and non-membership functions are defined as follows:
and
f (α) and g (β) may reflect the attitude of players (or decision makers) towards uncertainty. f (α) gives different weights to elements at the α-cut sets of the TIFN so that the contribution of the lower α-cut sets can be lessened due to the fact that these cut sets arising from have a considerable amount of uncertainty. Therefore, synthetically reflects the membership degrees of . Likewise, g (β) can lessen the contribution of the higher β-cut sets of since these cut sets arising from have a considerable amount of uncertainty. synthetically reflects the non-membership degrees of . f (α) and g (β) may be considered as weighting functions, which are specifically chosen according to need in real situations. Jafarian and Rezvani [9] gave more explanations and specific forms of the functions f (α) and g (β), respectively. For example, f (α) = α and g (β) =1 - β are simpler forms of such functions.
It is easy to see from Equations (9) and (10) that and for any TIFN .
Likewise, the ambiguities of the membership and non-membership functions for any TIFN are defined as follows:
Clearly, and are just the lengths of the intervals and . Thus, and basically measure how much there is uncertainty in .
If we take f (α) = α (α ∈ [0, 1]) and g (β) =1 - β (β ∈ [0, 1]). In this case, for any TIFN , it is easily derived from Equations (9–12) that
It can be easily seen from Equations (11) and (12) that and for any TIFN . Further, we can draw the following conclusion, which is summarized as in Theorem 1.
Theorem 1 shows that the values and ambiguities of any TIFN are linear.
The value-index and ambiguity-index of any TIFN are defined as follows:
Theorem 2 shows that the value-index and ambiguity-index of any TIFN are linear.
It can be seen from Equations (13) and (14) that the larger the value-index and the smaller the ambiguity-index the bigger the TIFN. Therefore, we define a new ranking-index of any TIFN based on difference of the value-index and ambiguity-index as follows:
Theorem 3 shows that the difference-index of any TIFN is linear. Further, it can be easily seen from Equation (15) that the larger the difference-index the bigger the TIFN. Thus, the difference-index based ranking method is proposed as follows.
if and only if is larger than , denoted by ; if and only if is equal to , denoted by ; if and only if or .
The above ranking method has some useful properties, which are summarized as in Theorem 4.
(P1) For any TIFN , is always valid;
(P2) For any TIFNs and , if and , then ;
(P3) For any TIFNs , and , if and , then ;
(P4) Assume that F1 and F2 are arbitrary finite subsets of TIFNs. For any TIFN and , then on F1 if and only if on F2;
(P5) For any TIFNs , , if , then .
(P5’) For any TIFNs , , if , then .
(P6) For any TIFNs and , if , then for any TIFN ;
(P6’) For any TIFNs and , if , then for any TIFN .
Let us consider a TIFN bimatrix game, where sets of pure strategies are S1 and S2 and sets of mixed strategies are Y and Z for players I and II. If player I chooses any pure strategy α i ∈ S1 (i = 1, 2, ⋯ , m) and player II chooses any pure strategy β j ∈ S2 (j = 1, 2, ⋯ , n), then at the situation (α i , β j ) players I and II gain payoffs, which are expressed with TIFNs (i =1, 2, ⋯ , m; j = 1, 2, ⋯ , n), where and (i = 1, 2, ⋯, m; j = 1, 2, ⋯ , n), where . Thus, the payoff matrices of players I and II are expressed as and , respectively.
The above payoffs and (i = 1, 2, ⋯ , m; j = 1, 2, ⋯ , n) of players I and II are TIFNs in the finite universal set X′ = {(α i , β j ) |α i ∈ S1 (i = 1, 2, ⋯ , m) , β j ∈ S2 (j = 1, 2, ⋯ , n)}. For instance, let us consider a simple example in which there are two pure strategies for both players I and II, i.e., player I has pure strategies α1 and α2 and player II has pure strategies β1 and β2. Then, the universal set is , which has four elements (i.e., situations). In the sequel, the above TIFN bimatrix game is simply denoted by for short.
If player I chooses any mixed strategy y ∈ Y and player II chooses any mixed strategy z ∈ Z, then the expected payoff of player I is , whose α-cut set and β-cut set can be computed as follows:
According to the operations of TIFNs, the expected payoff of player I is a TIFN and can be calculated:
Similarly, the expected payoff of player II is , which can be calculated as follows:
Stated as earlier, however, player I’s expected payoff and player II’s expected payoff are TIFNs. Therefore, there are no commonly-used concepts of solutions of the TIFN bimatrix games. Furthermore, it is not easy to compute the membership degrees and the nonmembership degrees of players’ expected payoffs. As a result, solving Nash equilibrium solutions of TIFN bimatrix games are very difficult. In the sequel, we use the ranking function D λ to develop a new method for solving the TIFN bimatrix game .
Using the ranking function of TIFNs given by Equation (15), we can transform the TIFN payoff matrices and of players I and II into the payoff matrices as follows:
According to the above usage and notations, the above parametric bimatrix game can be simply denoted by , where the pure (or mixed) strategy sets of players I and II are S1 and S2 (or Y and Z) defined as the above. Then, the TIFN bimatrix game is transformed into the parametric bimatrix game . Hereby, according to Definitions 1–3 and Theorem 3, we can give the definition of satisfying Nash equilibrium solutions of the TIFN bimatrix game as follows.
It can be easily seen from the ranking function given by Equation (15) and Theorem 4 that Definitions 3 and 4 are equivalent in the sense of the order relation defined by Definition 1. Thus, for given parameters λ1 ∈ [0, 1] and λ2 ∈ [0, 1], according to Theorem 4, the parametric bimatrix game has at least one Nash equilibrium solution. Namely, the TIFN bimatrix game has at least one satisfying Nash equilibrium solution, which can be obtained through solving the following parametric nonlinear programming model:
According to Nash equilibrium solution, if(
Noticing that , , and and are respectively continuous non-decreasing and non-increasing functions of the parameter λ ∈ [0, 1] if is a non-negative TIFN. Then, u* (λ1) and v* (λ2) are monotonic and non-decreasing functions of the parameters λ1 ∈ [0, 1] and λ2 ∈ [0, 1], respectively. Thus, the satisfying Nash equilibrium values of players I and II are obtained as [u* (0) , u* (1)] and [v* (0) , v* (1)], respectively, and can be written as the TIFNs and , where represents a mixed situation. Thus, and are Nash equilibrium values of players I and II, respectively.
Thus, according to Equation (18), any satisfying Nash equilibrium values and corresponding satisfying Nash equilibrium strategies of players I and II can be obtained through choosing different parameters λ1 ∈ [0, 1] and λ2 ∈ [0, 1].
Let us consider the case of two manufacturers P1 and P2 making a decision aiming to enhance the satisfaction degrees of customers. And assume that manufacturers P1 and P2 are rational, i.e., they will choose optimal strategies to maximize their own profits without cooperation. Suppose that manufacturer P1 has two pure strategies: establishing a scientific and rational service system α1 and providing customers with satisfaction product α2. Manufacturer P2 possesses the same pure strategies as manufacturer P1, i.e., the options of manufacturer P2 are: establishing a scientific and rational service system β1 and providing customers with satisfaction product β2. Due to lack of information or imprecision of the available information, the players’ judgments for the satisfaction degrees of customers including preference and experience are often vague and players estimate them with their intuitions, so the players usually are not able to forecast the sales amount of their companies exactly, which may be some hesitation about the estimation of the sales amount. In order to deal with the uncertainty, TIFNs are used to express the sales amount of the product. The payoff matrices of manufacturers P1 and P2 are expressed as follows:
By using Equation (18), the parametric bilinear programming model is constructed as follows:
Taking f (α) = α (α ∈ [0, 1]) and g (β) =1 - β (β ∈ [0, 1]), and by using Equations (9–15), the differences of the value-indexes to the ambiguity-indexes for the TIFNs and can be obtained as follows:
It is easily seen that, for the parameters λ1 ∈ [0, 1] and λ2 ∈ [0, 1], solving Equation (19), we can obtain the satisfying Nash equilibrium values and corresponding satisfying Nash equilibrium strategies of manufacturers P1 and P2, respectively, depicted as in Tables 1–3.
It can be easily seen from Tables 1–3 that the satisfying Nash equilibrium value of a player (i.e., manufacturer P1 or P2) depends on both their preference/parameter: (1) Strategy choice of a player is only affected by other player’ preference/parameter, and it shown a negative correlation. That is to say, the bigger other player’s risk preference/parameter the smaller the player’s optimal strategy value. (2) From the optimal strategy, a player’s optimal expected payoff value is only affected by his preference/parameter, and showed a positive correlation. That is to say, the bigger a player’s risk preference/parameter the bigger the player’s optimal expected pay off value.
Determining payoffs of bimatrix games absolutely depends on players’ judgments and intuition, which are often vague and not easy to be represented with crisp values and fuzzy numbers. In this paper, we formulate bimatrix games with payoffs of TIFNs and propose corresponding parameterized bilinear programming method. The highlights include: (1) We propose the concepts of TIFNs and the difference-index of the value-index to the ambiguity-index, and the new ranking method based on the difference-index is a total order, which satisfies the 6 properties proposed by Wang and Kerre [20] and possesses some useful properties such as the linearity. (2) A pair of parameterized bilinear programming models is derived from the auxiliary TIFN mathematical programming models of any TIFN bimatrix games.
Obviously, for any payoffs with various forms of TIFNs, using the difference-index defined in this paper, we easily construct a pair of parameterized bilinear programming models. Hereby, for any given parameter λ ∈ [0, 1], the parameterized bilinear programming models become a pair of primal-dual linear programming models, which may be easily solved by using the bilinear programming method. Furthermore, it is easy to see that the derived parameterized bilinear programming models for TIFN bimatrix games are an extension of the linear programming models for fuzzy matrix games. Therefore, effective and efficient methods for explicitly determining values of TIFN matrix games will be investigated in the near future.
Footnotes
Acknowledgments
This research was supported by the Key Program of National Natural Science Foundation of China (No. 71231003), and the National Natural Science Foundation of China (Nos. 71561008, 71171055), and the Natural Science Foundation of Fujian Province (No. 2016J05169).
