All of the following are true for sequential games except which one?
A)Sequential games are illustrated as game trees.
B)Backward induction can be used to determine the Nash equilibrium of sequential games.
C)A classic example of a sequential game is an entry game.
D)Forward induction can be used to determine the Nash equilibrium of sequential games.

Question

Quizplus · Accepted Answer

Forward induction cannot be used to determine the Nash equilibrium of sequential games as it requires players to make rational predictions about the future actions of other players, which may not always be possible. Backward induction, on the other hand, starts from the end of the game and works backwards, allowing players to make rational predictions about the previous actions of other players. Sequential games are illustrated as game trees, and a classic example of a sequential game is the entry game.

All of the Following Are True for Sequential Games Except