Modeling multistage decision processes with Reflexive Game Theory

Abstract: This paper introduces application of Reflexive Game Theory to the matter of multistage decision making processes. The idea behind is that each decision making session has certain parameters like "when the session is taking place", "who are the group members to make decision", "how group members influence on each other", etc. This study illustrates the consecutive or sequential decision making process, which consist of two stages. During the stage 1 decisions about the parameters of the ultimate decision making are made. Then stage 2 is implementation of Ultimate decision making itself. Since during stage 1 there can be multiple decision sessions. In such a case it takes more than two sessions to make ultimate (final) decision. Therefore the overall process of ultimate decision making becomes multistage decision making process consisting of consecutive decision making sessions.