In sequential decision-making situations,using the roll-back method

Question

Quizplus · Accepted Answer

The roll-back method allows the decision maker going first to make predictions about what the decision maker going second will do, therefore choice C is correct. Additionally, the roll-back method results in a subgame perfect Nash equilibrium, which is a stronger concept than Nash equilibrium, therefore choice A is correct as well. Choice B is incorrect because the roll-back method does not require the decision maker going second to predict what the decision maker going first will do.

In Sequential Decision-Making Situations,using the Roll-Back Method