In a game, the mapping from the players’ strategies (decisions, actions) to the gains and losses they receive. In a two-person finite action game, the payoff function is often depicted in the form of a matrix, with a single number for each matrix element in a zero-sum game.
In financial engineering, the mapping from the underlying asset(s) to the payout of a contingent claim or financial derivative.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer Science+Business Media New York
About this entry
Cite this entry
(2013). Payoff Function. In: Gass, S.I., Fu, M.C. (eds) Encyclopedia of Operations Research and Management Science. Springer, Boston, MA. https://doi.org/10.1007/978-1-4419-1153-7_200584
Download citation
DOI: https://doi.org/10.1007/978-1-4419-1153-7_200584
Published:
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4419-1137-7
Online ISBN: 978-1-4419-1153-7
eBook Packages: Business and Economics