Scenario: Tom and Harry are participating in a game in which the participants are divided into groups of two. Tom and Harry have been put in the same group. In each round of the game, Tom will be given an item. Tom can either give it to Harry or pass it on to the next team. If he decides to pass it on to the next team, neither of them will get the prize. If he gives it to Harry, Harry can either pass it on to the next team or sell it himself. If he passes it on to the next team, each of them will get $100. However, if he decides to sell it, he will get an amount higher than $100 and Tom will get nothing.
-Refer to the scenario above.Tom should use ________ to play this game.

Question

Quizplus · Accepted Answer

Backward induction is the correct strategy for Tom to use in this game because it involves analyzing the game from the end to the beginning. By considering Harry's potential decisions and their outcomes, Tom can decide whether to give the item to Harry or pass it on to the next team to maximize his own payoff.

Scenario: Tom and Harry Are Participating in a Game in Which