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I have read a book saying that "... backward induction cannot be applied to games of imperfect or incomplete information because this entails cutting through non-singleton information sets."

However, in another textbook, it says that backward induction can be applied to games of imperfect information, and we can derive the equilibrium by starting at a historical point and show the subgame perfect equilibrium in that subgame is a equilibrium in the Nash equilibrium.

I wonder what are the contexts to use backward induction in a game with imperfect information but complete information?

wenxiu0000
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  • Please clarify your specific problem or provide additional details to highlight exactly what you need. As it's currently written, it's hard to tell exactly what you're asking. – Community May 18 '23 at 06:27

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