Backward induction, Game Theory

 

Backward induction is an iterative procedure for resolving finite general form or sequential games. First, one decides the finest policy of the player who makes the last move of the game. Then, the optimal action of the next-to-last moving player is determined taking the last player's action as given. The procedure persists in this way backwards in time until all players' actions have been determined. Effectively, one determines the Nash equilibrium of each sub game of the original game.

 

Posted Date: 7/21/2012 5:24:24 AM | Location : United States







Related Discussions:- Backward induction, Assignment Help, Ask Question on Backward induction, Get Answer, Expert's Help, Backward induction Discussions

Write discussion on Backward induction
Your posts are moderated
Related Questions
Combining Simultaneous and  Sequential Moves The material in this chapter covers a variety of issues that require some knowledge of the analysis of both sequential- move


A sequential game is one among imperfect data if a player doesn't grasp precisely what actions different players took up to that time. Technically, there exists a minimum of one da

The interaction among rational, mutually aware players, where the choices of some players impacts the payoffs of others. A game is described by its players, every player's methods,

Scenario As described by William Poundstone, imagine that you just notice that electricity has gone out for your entire neighborhood. the electrical company can send somebody to

I have a problem with an exercise about Cournot game. It is very complex and it is composed by different question and it is impossible for me to write the complete text. I need som

1.a.out 2 1 Here is the grid that has been generated: 1 1 1 0 0 0 0 0 1 1 0 1 0 0 1 1 1 1 0 0 1 1 1 1 0 1 1 0 0 1 1 0 0 1 0 1 1 1 1 1 1 0 1 0 1 1 0 1 0 1 1 1 0

Find the pure-strategy Nash equilibrium Alice is on vacation in Wonderland and considers trying a special mushroom sold by the caterpillar. She cannot tell upfront if the mush

A reserve worth is that the minimum acceptable bid in an auction. If no bidder submits a bid higher than the reserve worth, the auctioneer keeps the item offered for sale. Alternat

Equilibrium payoffs are (2, 3, 2). Player A’s equilib- rium strategy is “N and then N if b follows N or N if d follows N” or “Always N.” Player B’s equilibrium strategy is “b if N