Achieving Optimal Outcomes with Backwards Induction | Lessons from the Fire | Behavioral Economics in Marketing Podcast
Sep 15, 2022
A clear walkthrough of reasoning backward through decisions to find optimal action sequences. Practical marketing and leadership scenarios where that method helps guide choices. A seven-step model for building a backwards induction framework. A travel-product example with payoffs and how to add complexity like pricing, spend, and external risks.
10:17
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
question_answer ANECDOTE
Using The Method To Adopt A Cat
Sandra used a backwards induction and subjectively weighted utility model when deciding whether to adopt a second cat.
She emphasizes the model is subjective and requires assigning probabilities to outcomes.
insights INSIGHT
Growth Happens In Unplanned Moments
Backwards induction is powerful but subjective and can't predict all unexpected events like disasters or illnesses.
Sandra argues growth often comes from unplanned adverse events as much as from meticulous planning.
insights INSIGHT
Sapling Metaphor For Adaptive Growth
Sandra compares people to a sapling that reallocates growth to where it's most needed under stress.
She suggests using backwards induction to turn adverse pressure into multi-directional growth.
Get the Snipd Podcast app to discover more snips from this episode
Backwards induction in game theory is an iterative process of reasoning backward in time, from the end of a problem or situation, to solve finite extensive form and sequential games, and infer a sequence of optimal actions. In this episode, I considered achieving optimal outcomes with backwards induction using examples of when this type of decision making process comes in handy and the basic steps to create a backwards induction model.
Behavioral Economics in Marketing Podcast | Understanding how we as humans make decisions is an important part of marketing. Behavioral economics is the study of decision-making and can give keen insight into buyer behavior and help to shape your marketing mix. Marketers can tap into Behavioral Economics to create environments that nudge people towards their products and services, to conduct better market research and analyze their marketing mix.
Sandra Thomas-Comenole | Host | Marketing professional with over 15 years of experience leading marketing and sales teams and a rigorously quantitative Master’s degree in economics from Rensselaer Polytechnic Institute. Check out her Linkedin profile here: Sandra Thomas-Comenole, Head of Marketing, Travel & Tourism
Lessons From the Fire | Lessons From the Fire, Season 5 of the Behavioral Economics in Marketing podcast will be dedicated to those that along with our family lost everything in the Marshall Fire in Boulder, Colorado, as well as to those that have been affected by natural disasters. My hope is that listening to this season of the Behavioral Economics in Marketing podcast will help others in their healing process. But I also believe that this season will be full of marketing wisdom for marketing professionals and business leaders.
The Behavioral Economics in Marketing’s Podcast