The process of reasoning backwards in time, from the end of a problem or situation, to determine a sequence of optimal actions
In game theory, backward induction is an algorithm used to compute subgame perfect equilibria in sequential games. The process proceeds by first looking at the last possible action and determining what the last player will do in each situation (i.e. in each information set). Using this information, one can then determine what the second to last player will do. This process continues until one determines all possible actions