41. Basics of Game Theory: Extensive Form Games and Backward Induction

This video introduces the method of backward induction to solve for the subgame perfect equilibrium of an extensive form game with complete information.
I demonstrate how to use backward induction on two similar games that have very divergent outcomes.
For a list of videos and links to these videos (organized by topic), check out the Intromediate Microeconomics video web page:
blog.thisyounge...

[@gbproofdoe]

lol its so funny how easy things are to learn when the teacher is focused on teaching and not just trying to sound smart. thanks man.

[@Linda-kq9py]

This has to be one of the best explanations on how to look at game theory so far. I was so confused about it all. But watching this guy, the lightbulb in my head went off. Thanks!

[@jayMbodybuilding]

that awkward moment when your teacher with a phD couldn't explain this half as well as this guy. Logic not even once

[@sheenusharma6137]

You are the best economics teacher that I have across so far....

[@jdog25140]

Don't know if you're a professor, teacher, grad student, undergrad student, or whatever, but you SHOULD be teaching CLASSES on this. You just clarified approximately 3 weeks of college level teaching. Thank you.

[@MikiForester]

Using Harry Potter references to explain Game theory. I love it! Thank you so much!! As a second year Economics student, this helped a lot.

[@anthonya6044]

thank you for this work.. you guys are the real heroes of you-tube

[@blhfs]

This is so easy to understand, and a 3rd level game example is SUPER helpful! Thank you so much!!

[@tomasnobrega8087]

you are great! thanks for the work! i have seen many videos of you i'm from brazil and it is helping me a lot in college, you clarify hours of class in 15minutes. thank you

[@boonboonli3662]

You are just so good.....within few minutes you do a better job than prof.'s 2 hours presentation... still not sure why you doing so but I'm definitely your fan whatsoever....

[@cristoferlopez-vargas3552]

I am currently taking this class online through my university and my teacher, who has done research and has a PhD, leaves us around 10 pages trying to explain this. I can not watch her video because I can not understand anything she says. I wish I could just give this guy 1000$ to teach me this course for my university. Thank you for the explanation.

[@1xXitachiXx1]

this sir just covered a weeks worth of material right before my exam. thanks mate

[@JQMurrell]

Total thumbs up! I'm struggling to get a handle on all of Bueno de Mesquita's Principles of International Politics, and your instruction here makes things so much easier to follow! I might be able to get my homework done now.Thank you SO SO much for posting this video. :) You're a life saver. And I don't know if you just do this for fun or not lol but whatever the case, you're very good at what you do! Keep up the good work! Thanks again!

[@kimmyb9]

Great video! I've watched several prior to this, and this one is clearly the best at breaking everything down. Please continue making Econ videos. You're awesome!

[@Surrealiantx]

Love this! The Harry Potter references helped a lot!

[@sadainraza1818]

who else is watching and appreciating the teacher in 2021?

[@alerios1893]

Omg, you're such an amazing teacher! great explanation

[@simon5543]

holy shit, nice, watched 5 youtube vids from other channels about this topic, your one is by far the best! Backwards induction will save me for these questions!

[@amexander88]

Thanks a lot! You made it really easy to understand.

[@westronic]

Very well presented. Will be watching more of your videos!

[@Thelushable]

I struggled so much. This was really good. Thank you!

[@imadedinehakim443]

thank you man, im having a test and this video realy helped me understand

[@_ghada98]

Thank you so much for this video !! Helps a lot.

[@SlickNick8686]

Excellent explanation.

[@Tanukisaint]

Thank you very much, this really helped with my homework.

[@Jankom93]

Thank you man, saved my Math Eco exam :).

[@obadasy2163]

Thank you so much for this great work.

[@zacharyklement3823]

You killed this! Thank you so much man

[@BloodEredar]

Thank you very much for making these videos!

[@Sabsterjoon]

Excellent video Sir!

[@ipitythefool97]

really helpful - way better than my professor

[@piggod812]

a very old video, but an excellent one

[@unikal4e]

Thanks man! This was really really helpful! Keep it up!

[@biunguyen308]

you made my day, thank you so much!

[@rym21]

HELPED A LOT!

[@sammcmanus9102]

You're a legend. Thankyou

[@tmpettig]

You make this seem a hell of a lot easier than my teacher does.

[@tarek6545]

Thank you 😊🙏🙏🙏🙏

[@biodunliadi1260]

thank you bro, you have actually ended my nightmare

[@guzaltoktieva5523]

U are the best. Thank u :)

[@hailongxie]

Thanks, it is better than my professor's ramble.

[@aphantomfire]

I'M LEARNING!

[@danieltamasi7517]

thx! great explanation!

[@Garrettthethief]

first one was great,second one you stood in the way. but nice job....hero^^

[@Jacqui8000]

thank so much you probably just saved me from failing that part of my exam

[@PritamThakur]

Thanks a lot for the video :)

[@memorablename5187]

hah, u helped me answer a question at 2am thanks dude

[@vigelic]

THANK YOU SO MUCH!

[@FenderAddict93]

Good video. The only bad thing about it is the sharp 'S' sound throughout the video. And that only applies when you're wearing a headphone. xD

[@celenachang5555]

thank you!

[@sushmitha2537]

Extremely helpful, but so many cuts and takes in the video was mildly distracting. Otherwise, very well explained and crystal clear! Thanks :)

[@jin37uk]

great video! Also I don't know why but you really seem to remind me of Jason Segel lol

[@Plokijuh1229]

This video is fucking god tier

[@AE-is4rj]

perfect!

[@mijacr]

Is spite part of game theory? If I was Harry, I wouldn't be indifferent between X and S, because Draco denied be of a possible (4,5) outcome. If Draco knows Harry can act out of spite, he would pick C to avoid Harry's spiteful S move (3,4). So spite comes in play not only for the spiteful player but also for their adversary's reasoning. What kind of concept covers this? given that the problem is not iterated.

[@mijacr]

Harry can do a credible threat then I guess

[@obluscurepodcast2165]

Not only spite but if Harry plays S, Draco would find it more beneficial to play to get the (4, 5) outcome since it benefits him more than 3. I don't understand why Harry should be indifferent in that situation.

[@HaroonKhan-jk3fh]

This guy is pretty gangster, brilliant vid

[@obluscurepodcast2165]

Why doesnt Harry always play S if Draco plays A? That way Draco is forced to play C since it has a bigger pay off than S.

[@hankb8978]

Great Video! Quick question: In the second example, wouldn't Harry pick p

[@FuzzyAason]

Hank B Haha.. you're right! If had choose S.. Draco would choose C of which he will get an even higher payoff

[@julianatews]

Great! :)

[@kunjaai]

How that number 5 you choose??

[@zerohero109]

Thankss. But may i know, why at first you used top part of number for draco? E.g choose five rather than 3. But at second, u used bottom part of number?

[@orejatto]

Why does p have to be greater that 1/2? Where did the 1/2 come from

[@yellowsocksification]

can someone explain the equation again 5p+3(1-p)? why did the "1-p" come from and how did he know to add it for the equation?

[@boonooi2211]

P means probability and 5p means the probability that the payoff is 5 and 3(1-p) means the probability of the payoff being 3. 1 - p is simply 100% - p%. For example, if there's a 40% chance of the payoff being 5, then there's a 100%-40%=60% chance of the payoff being 3.

[@wraine999]

@jin37uk he reminded me of him,too :)) maybe because of his gestures and mimics :)

[@remyscheren7984]

thanks cedric diggory

[@AMNG1994]

SECTUMSEMPRA, not SEPTUMSEMPRA :D

[@globalwarming08]

Thanks for the effort but my mind is used to seeing payoffs written next to each other separated by commas. You writing those upside down is just messing up my mind

[@anjamoskon]

Up till now, this was very boring! Teachers should check this out :)

[@zes7215]

no such thing as how x interacx or ts naturalx or not, cpux, do, think any nmw is perfx

[@googleuser6485]

My professor places the numbers side by side so it's harder for me to understand :(

[@DRDANKIES]

DOG THANK YOU..i might get a f+ now

[@deanpick8556]

I like it, BUT you can improve by writing the "payoffs" and "strategies" more clearly.AND you also standing infront of the payoffs, so we can't see clearly.Just consider moving to the side more often.

[@discretoboy]

Thanks a lot, very instructive video.