Backward induction

Backward induction is a method used to solve strategic decision-making problems by starting from the end of a process and working backwards. It involves predicting the likely actions of others at each future step and then determining the best move at each stage based on those predictions. This approach helps players or decision-makers find the optimal strategy by considering how their current choices influence future outcomes, ultimately leading to the most advantageous decision in the present. It’s commonly used in game theory to analyze complex situations with multiple steps and participants.