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Sequential Games

In: A Case-Based Approach to Game Theory

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  • Rohit Prasad

    (Management Development Institute Gurugaon, Economics and Public Policy)

Abstract

This chapter explores games in which players move one after another rather than simultaneously. It introduces rollback (or backward induction) equilibrium, a powerful method for solving such games by reasoning backward from the final move. Applications include the telecom war between Airtel and Jio, the strategic rhetoric of the 2016 US elections, and India’s demonetization policy. A key focus is on threats and promises—strategic tools that only influence outcomes when they are credible. Case studies such as the Central Bank-Finance Ministry dynamic and the challenge of law enforcement under populist pressures illustrate how timing and commitment shape sequential decisions. The chapter concludes with a brief reflection on how democratic processes like elections reveal the limits of non-cooperative logic in achieving transparent political outcomes.

Suggested Citation

  • Rohit Prasad, 2026. "Sequential Games," Springer Texts in Business and Economics, in: A Case-Based Approach to Game Theory, chapter 4, pages 95-134, Springer.
    • Handle: RePEc:spr:sptchp:978-981-95-4302-1_4
    DOI: 10.1007/978-981-95-4302-1_4
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