Jamal Awil

← The Strategy of Conflict

Sequential-move solutions emerge by iteratively discarding dominated strategies backward [causal]

This, then, is the way that a solution to the original sequential-move game shows up in the static ("moveless," or simultaneous-tacit-choice) game. It is a solution arrived at by discarding dominated strategies, with the criterion for domination reflecting only the undiscarded strategies at each stage. This seems to be the general form of solution in the enlarged tacit game that corresponds to a sequential-move game when the latter has a determinate solution. The discarding of rows and columns can actually be identified with the process of first calculating the rational last move for all possible sets of prior moves, then, knowing what last move would follow each next-to-last move, calculating the best next-to-last move for all possible sets of prior moves and so on back to the best first move of the game.

DEFINE: Explains backward induction as iterative elimination of dominated strategies in the enlarged simultaneous-tacit-choice game.

Thomas C. Schelling, The Strategy of Conflict, loc. 355