Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Backward Induction
B
Forward Induction
C
Dominant Strategy
D
Nash Equilibrium
Understanding the Answer
Let's break down why this is correct
Answer
In game theory, when a player chooses their moves by first looking at the opponent’s likely replies at the end of the game, they are using backward induction. This method starts at the final decision point and works backward, figuring out the best move at each earlier stage. By assuming the opponent will react optimally, the player can predict the outcome of each possible move. For example, in a simple two‑move game, a player first assumes what the opponent will do in the last round, then chooses the best preceding move that leads to that outcome. This reasoning ensures the player’s strategy is consistent with the opponent’s rational responses.
Detailed Explanation
Backward induction means you start at the game’s end and work backwards. Other options are incorrect because Forward induction looks forward from past moves to guess future ones, not backward from the end; A dominant strategy works no matter what the opponent does, so it doesn’t rely on predicting their reply.
Key Concepts
Game Theory
Strategic Decision-Making
Backward Induction
Topic
Game Strategies and Responses
Difficulty
medium level question
Cognitive Level
understand
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