Learning Path
Question & Answer1
Understand Question2
Review Options3
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Explore TopicChoose the Best Answer
A
Players choose strategies based solely on their own payoffs, ignoring opponents' actions.
B
Players anticipate future moves of opponents and select strategies that maximize their outcomes.
C
Players randomly select strategies without considering potential reactions from others.
D
Players focus only on the first move without regard for subsequent decisions.
Understanding the Answer
Let's break down why this is correct
Answer
Backward induction starts at the final move of a sequential game and works backward, assuming each player will pick the best option for themselves. By looking at the last decision first, we can predict what the next player will do, and then we consider how the current player should respond to that prediction. Repeating this step by step gives each player a clear idea of the best strategy at every point. In practice, a player can then choose a strategy that guarantees the best outcome given the future optimal choices of others. For example, if player A chooses between 1 and 2, and player B will pick 3 if A picks 1 and 4 if A picks 2, backward induction shows that A will choose 2 because it leads to B picking 4, which is better for A.
Detailed Explanation
Backward induction means a player looks ahead to the end of the game and works backward. Other options are incorrect because This idea says a player only cares about their own payoff and ignores the opponent; Choosing randomly means the player does not plan.
Key Concepts
Backward Induction
Game Theory
Strategic Decision-Making
Topic
Game Theory and Backward Induction
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1In a sequential move game, if Player A knows Player B will always choose the highest payoff available, how should Player A use backward induction to maximize their own payoff?
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2
Question 2What is the correct sequence of steps to apply backward induction in a sequential game scenario?
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3
Question 3Game Theory : Backward Induction :: Strategy : ?
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4
Question 4In a game where Player A moves first and Player B observes that move before making their own decision, which of the following scenarios best illustrates the concept of backward induction?
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5
Question 5In a sequential move game analyzed using backward induction, players anticipate the actions of their opponents to select moves that maximize their own payoff. This technique is primarily used to determine the _____ strategy for each player.
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6
Question 6Which of the following statements are true regarding game theory and backward induction? Select all that apply.
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7
Question 7In a two-player game, if Player A anticipates Player B's response to their move, which strategy best exemplifies backward induction?
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8
Question 8In a competitive game scenario where two players must decide their next move while anticipating each other's responses, which strategy best utilizes backward induction for optimal decision-making?
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9
Question 9In a two-player game scenario, which of the following strategies can effectively leverage backward induction to anticipate an opponent's moves? Select all that apply.
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