Strategic Econ

  • Welcome
  • Blog
  • Managerial Microeconomics
  • Microeconomics
    • Doug and John webcasts -Table of Contents
    • Webcast Gallery
  • Game Theory
    • Module 1 Introduction
    • Module 2 Sequential Games
    • Module 3 Simultaneous Games
    • Module 4 Sequential & Simultaneous Games
    • Module 5 Introducing Uncertainty: Risk Attitudes and Mixed Strategies
    • Module 6 Probability, Uncertainty, and Inference
  • Potpourri
  • Contact
You are here: Home / Uncategorized / Module 2-2.2 A simple 2×2 game tree and its analysis using rollback reasoning

March 7, 2014 by jagfnz Leave a Comment

Module 2-2.2 A simple 2×2 game tree and its analysis using rollback reasoning

A short (12 minute) clip setting up a game tree (the clip explains how a simple game tree is constructed) to help represent the PDIP structure of a game. So a descriptive first part….Then the game is analysed using a method called rollback reasoning (Dixit and Skeath’s term) or “backward induction” (a term that is more common among game theorists. The key idea of backward induction in a sequential game is to start at the (a possible) end of the game, try to figure out what happens there, then step back….at each step knowing what to expect out of the possible futures from that point on. It’s definitely an important strategic idea with wide application in life…if you know how to use it.

Filed Under: Uncategorized

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Summarising and Analysing articles and presentations
  • Vancouver Play – producing public goods that people want
  • Market efficiency
  • Transaction Cost Economics
  • Bapa 550 Video clips

Search This Site

Copyright © 2021 · Executive Pro Theme on Genesis Framework · WordPress · Log in