Business Microeconomics
The centipede game is a multi-stage game in game theory where two players alternately decide whether to take a larger share of an increasing pot or pass it to the other player. The game typically unfolds with each player facing a choice to either 'take' the pot at their turn or 'pass' it, leading to a larger potential payoff for both if they continue passing. This game highlights the complexities of strategic decision-making and the importance of backward induction in predicting outcomes in sequential games.
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