What is pay off tables?

Answer 1

A pay-off table depicts the economics of the given problem. A pay-off is a conditional value a conditional profit, loss, or, may be, a conditional cost. It is conditional in the sense that associated with each course of action is a certain profit/ loss, given that certain event has occurred. Thus the profit or loss resulting by the adoption of a certain strategy is dependent upon, and is therefore associated with, the particular event that may occur. A pay-off table thus represents the matrix of the conditional values associated with all the possible combinations of the acts and the events.

Pay offs:- In order to evaluate each possible course of action, the result of each event with each course of action have a value (or pay off) placed upon it. A number of consequences result from each action under different conditions, the conditions being various states of nature, the consequences will be m x n problems, consequences can be expressed in terms of money and utility.

The consequences may be evaluated in several ways such as:

(i) In terms of profit

(ii) In terms of cost

(iii) In terms of opportunity loss and

(iv) Units of satisfaction or utility.

Answer 2

It is a table which shows the profits & losses associated with different strategies available to distinct players in competition with one another.