Meaning of backward induction | Babel Free

Definitions

The process of reasoning backwards in time, from the end of a problem or situation, to determine a sequence of optimal actions.

uncountable, usually

Examples

“Simple game theory tells us that a process of backward induction should, really, at some point, induce the smart money to get out. And were that to happen, investors really should be prepared to lose everything.”

CEFR level