Backward induction in games
ID: backward-induction-in-games
In a finite perfect-information game without chance moves, solve terminal decision points first. At each earlier decision point, its player chooses an action maximizing its own payoff among the already solved continuations. Record a choice in every subgame, including those not reached by the root choice. This constructs a subgame perfect equilibrium. Tied choices may yield several equilibrium strategies and several outcomes. The name refers to Ernst Zermelo; the computational procedure is an application of backward induction.
New to topics? Read the docs here!