Question

1. What is meant by "Backwards Induction"?

2. what is mean by an "ordinal game"?

3.What is Game Theory?

Answer 1

1.

Backward induction is the method or the process of analyzing the game front back to front. In this method, dominated strategies are deleted from each information set. This process is repeated iteratively until we reach at the Nash Equilibrium outcome.

2.

Ordinal Game is a type of game in Game Theory in which we do not have the payoff functions of the players. Instead, each player rank order their choice against the choices made by other players. This rank was developed by Von Neumann and Morgenstern.

3.

Game Theory is that branch which studies the choices set by the players in the game. Each player tries to optimize his choice at the cost of other player. It involves mathematical methods that used to analyze the competitive situations