The US-OPEC energy conflict the payoff matrix by the Analytic Hierarchy Process

Thomas Saaty
Joseph M. Katz Graduate School of Business
University of Pittsburgh
United States

Publication date: Dec, 1979

Journal: International Journal of Game Theory
Vol.: 8- Issue: 4- Pages: 225-234

Abstract: In this paper we study the U.S.-OPEC oil conflict and compute the payoff matrix for each of the two players using the Analytic Hierarchy Process by first evaluating the strategies of each player according to their intrinsic merits and then according to their relative strengths when considered against each of the opponent's strategies. We compose the two results to derive the pay-off matrix. We then identify and study equilibrium payoffs and discuss their strategies.

Keywords: Economic, Game theory, Relative strength, Payoff matrix, Equilibrium payoff