Bimatrix Games with Fuzzy Payoffs and an Equilibrium Solution Concept Based on Possibility Measure

Abstract

In this paper, we formulate bimatrix games with fuzzy payoffs, and introduce an equilibrium solution concept based on possibility measure. It is assumed that each player has nonlinear fuzzy goals for his payoff. To obtain an equilibrium solution based on possibility measure, the algorithm is proposed in which the values of possibility measure are updated repeatedly until equilibrium conditions are satisfied.