Multiple choice question. Give reason why you selected the answer.
A game where two players choose between three options without knowing the other players choices is best
represented by:
a. Backwards Induction
b. A decision tree
c. A game matrix or Normal Form Layout
d. A game tree or Extensive Form Layout
Answer- D) A game tree or extensive form layout.
Backward Induction is a technique to solve a game of perfect information. In this technique, the moves that are last played in the game are considered first., and determine the best moves for the player in each case. Then, taking these as the given future actions, it proceeds backward in time, once again determining the best move for the respective player untill the beginning of the game is reached.
A game matrix is generally used when two players are involved and there is perfect information but here in this question, number of players arethree with imperfect information they, i.e. they don't know what other players choices is.
Decision tree will not be chosen in this case for the same reason.
Extensive form Layout is best suited to represent incomplete information when the players don't know what other player is going to choose.
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