Erin has time consistent preferences must decide when to go to the doctor over the next 4 days. She knows she must go one of these four days. She knows that using backward induction to decide when to go will yield the optimal solution.

Question

Quizplus · Accepted Answer

Backward induction is a method used in decision-making where the decision-maker starts with the last possible decision point and works backward to the present, optimizing at each step. Since Erin's preferences are time consistent, meaning her preference ordering does not change over time, using backward induction will indeed yield the optimal solution for deciding when to go to the doctor.

Erin Has Time Consistent Preferences Must Decide When to Go