Backwards Induction Game Tree

This game theory video explains how to solve sequential moves games using backward induction. I use the game tree / extensive form.

[@Dgaf001]

Amazing! You just explained in less than 10 minutes what my professor could not in 1 month! Thank you!

[@jasonjackson4555]

Great explanation. Game theory was one of my favorite subjects as an econ undergrad at UCLA. I wish more people had this basic understanding and saw how it drives decision-making in business, international conflicts and other areas.

[@michellelim3676]

I watched this and the other video explaining the nash equilibrium... it was so clear and easy to understand this complicated games thing after me reading my textbooks over and over. Thank you so much!!! You are a legend

[@jasminhamzic5617]

Ashley. You got an extraordinary talent to explain topics from a student perspective. Last year you explained me the classical Game Theory, in a new module this semester we tackled backwards induction and I saw you again. And again great work! Thanks a lot! You are great! Best Regards from Germany. Jasmin (I'm male).

[@Data_Devil_]

why ur name is jasmin it's a girl name dude

[@jasminhamzic5617]

@@Data_Devil_ In Bosnia, Croatia and Serbia. Jasmin is a male name and the female version is Jasmina. Like Andrea in Italy.

[@josephsmyth832]

@@jasminhamzic5617LMAO. It’s ironic that the comments that were made about your name was based on the use of game theory and presumption.

[@PunmasterSTP]

You're a wizard Ashley!

[@dbrown4126]

Excellent teacher, you are!!! You took a complex model, for those not used to these ideas, and explained it efficiently, simply, and expertly! Thank you.!

[@maliamungubenard1896]

Who else hits the like button even before watching? Your the best tutor ever

[@raskand1977]

Hi Ashley, I have really appreciated your videos this weekend. I am sitting here reading all the articles out there, but you just totally nail it in eight and half minutes. Thank you so much!

[@user-qt6vy7qk3v]

Thank you so much Ashely. I watch too many videos in this subject, but I did not learned. After watching this video, I learned it in 5 minutes. You are awesome!

[@ittisaftamim]

Finally found a video to understand Subgame perfect Nash Equilibrium. Must see for anyone who is having trouble understanding SPNE. Thanks a lot, Ashley :)

[@matthewhecht6580]

It hard to express my word of thanks in writing to you. You make game theory understandable.

[@e02100]

Hi Ashley! Thank you so much for uploading these for all of us! Im in a managerial economics course for my MBA and I have sent fellow students in the class to watch your videos (the best ones on KZbin imo). I was wondering if you happened to have or could upload a simpler one for them with two players. Some are having difficulty understanding the two player game trees and this may be a bit overwhelming even though you've color coded and explain it perfectly!! Again, tysm!!!!

[@malenawong167]

Love the harry potter analogy! made it way easier to relate!

[@ahooramazda6627]

Dead simple and practical explanations as always. Thank you!

[@Alibaba44225]

very good explanation and very easy to understand. thank you

[@kennythemasseuse]

Thanks, this really helped as its a quick and immediate dive into backward induction

[@attuneflows3539]

i just want to thank you so much for saving my grades, truly

[@nandhitaputri7074]

i am preparing my exam rn and this video help a lot!! thank you, Ashley

[@EdvinPalmer]

Excellent explanation. Thank you so much!

[@stephenponin1165]

best presentation love it saved my day

[@shannongovers]

Great video, short to the point and explained really well!

[@akankshabassi2428]

Thanks by far the best video for the topic

[@marioshamhon2809]

You are awesome thank you for helping me understand this before my final I love the harry potter example by the way

[@owencaulfield]

This video truly saved me

[@muzombo3334]

Thank you for your video I will make my examen tomorrow I hope it's going to help me !!

[@GradStudentTutorials]

Amazing video! Thank you so much. Your explanations are very clear.

[@a.b.c.d.e...]

The second example shouldve containted a tie to express the fact that sometimes there are multiple backward induction solutions.

[@SamEbby]

this was JUST PERFECT! thank you I needed to know this for my final in game theory this week I was struggling but THIS video finally made sense to me the internet is wonderful thank you for making this

[@shrawanipal]

This is amazing, thank you!

[@basicbot7349]

wow, you made this so easy

[@matania21]

Very helpful ! Thanks for the very clear lecture

[@Yong.q]

Good explanation!

[@graffitiwritersllc]

thank you again Dr. Hodgson

[@muhammadkhairiaimran6218]

great video, my only question is how it the values of the payoff being determined? Unless it's totally random for this learning video.

[@TatianaJaramillo-he8nt]

Great video thank you so much

[@dhekrabensassi1769]

Thank you for this clear explanation. Can we use backward induction to resolve Stackelberg in 3 players extensive form game?

[@AshleyHodgson]

Yes. Backwards induction is the way to approach Stackleberg (Quantity Leadership) Oligopolies, no matter how many firms. kzbin.info/www/bejne/eKKkp4SNfs6fp80&ab_channel=AshleyHodgson

[@dhekrabensassi1769]

@Ashley Hodgson thank you. Have you an example in extensive form game with 3 players? I mean a tree like the exemple of Ginny, and Voldemet and Harry where we want to find stackelberg equilibrium. If you have an exemple I will be grateful if you share it with me.

[@maliamungubenard1896]

May God bless you abundantly

[@SosoKoko21]

Thanks a lot, this is really great :)

[@danielameti7221]

Brilliant explanation!

[@geraudeakakpo3544]

Thank you so much for this good explanation!

[@angelinelyn8162]

i am so happy thank you so much...this was so easy to understand

[@ahmedbassyounyshehab4258]

thank you , finally understand tree game

[@amalzahra578]

This is so great!!!

[@wiktorias58]

Great explanation, thank you!

[@dumimabhena3460]

This was very helpful. Thank you!

[@dfdfgdfkih]

This video is really helpful. Thanks Ashley

[@poladyusifli2959]

Great video! Thank u

[@_hridhima]

This was so so amazing. Really helped me. Thanku!

[@JonSnow-qj5pl]

Is final outcome of backward induction in Nash equilibrium . If yes , is it sub game perfect nash equilibrium too ? Ur writing is beautiful btw :))

[@Audry_budo]

Thank you!😭🫶🏾

[@user-ry8nt3td4c]

Very well explained. Can spmeone recommend video where you have this decision tree transformed into matrix? Like big table...

[@rakibulislamarafat6970]

This is amazing!!!!. Thank you!

[@Luckygirlintheworld]

Thank you soooo much for saving my brain😂😂😂😂

[@andersonanjo5388]

Very very helpful. Thank you.

[@akhilchanana8824]

Amazing, thankyou for your help !

[@MohammedAli-ue7is]

Thank you

[@wahyuwicaksono4730]

how we make point for every move. thanks.

[@haktat]

Very helpful. thank you

[@experiencelifelittleone]

thank you! So helpful!

[@doingmything93]

Awesome!

[@muhammadnabeelrehan1324]

Thank youuuu

[@alanl5832]

Clear, thank you

[@timacorn2536]

thank you sm

[@oghenefejiroagbi1469]

What happens when there is indifference between one of the two terminal histories .?

[@deekshanshvardhan4976]

is this nash equilibrium we are getting?

[@kirillholt2329]

What if at the last fork player 2 has two equal outcomes ? Let's say (... , 0) (... , 5) and (... , 5) you would crosso out one with 0 but then what ?

[@NILESHKUMAR-vg6gl]

What if ? The end node player is indifferent between two strategies..

[@julianauribecarmona3078]

Señora la amo

[@GauravDattJoshi]

life saver

[@sanjushrestha1346]

Thank you!

[@user-th4hf5fz3z]

Please I need books about sequential game please

[@shlomozerbib388]

I m wondering if the results would be the same if the game order between the players is changed...

[@AshleyHodgson]

No, it would not necessarily be the same.

[@marodimbawala4723]

Thanks I get u madam Love youuu

[@Grey_mind]

I love you

[@josephsmyth832]

So essentially game theory has nothing to do with right conduct since it’s used as progressive discipline at work and therefore it lacks any truth and justification as it’s not based on material facts and direct evidence, correct? This also is used in law.

[@AshleyHodgson]

Game theory is a theoretical framework, but tons of evidence points to the fact that it works well to explain many biological and economic phenomena. That is not to say that it "always" applies. But in cases where empirical evidence points to game theory, it performs well at predicting a variety of things.

[@hyuming2577]

One more note from this video guys -- > she loves Harry Potter.😝😝

[@danielsaunders4058]

thank you