Game Theory 101 17 Backward Induction

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Game Theory 101: The Complete Textbook on Amazon: https://www.amazon.com/Game-Theory-10... • http://gametheory101.com/courses/game... • How do we find subgame perfect equilibria? Backward induction is the simplest method. To know the smart moves at the beginning of the game, we must first figure out how today's actions affect tomorrow's consequences. As such, we start at the end of the game and work our way back up. This is backward induction in a nutshell.

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