The Entry Game

This video shows how to use backward induction to solve a sequential game.

[@ssssfsss3857]

thanks, it really helps. You explain in a very clear way.

[@pomegranates2862]

I don't mind studying economic if I have a pretty tutor like her 🥰

[@friednoodlee6599]

I'm not majoring in math, and if we're looking only in theories, the end result definitely is 2,5. But in practicality, the M knows that N will choose to enter (because of 2,5 result). Now instead of cutting the profits to 5, they could just being mean and try to driving out N of competition. Now because all new company know that M will be hostile, they will choose to not enter the industry. So M choose to get the profit of -1 for one or several years so it could get the profit of 10 to perpetuity. They goes your example of Standard Oil

[@micahmainala9357]

Very beautiful explanation. You make Economics feel easy😊

[@estherolamide2284]

Thank you very much. This really helps and you teach so well😍😍

[@freundliche]

Very intelligent follow. Thank you.

[@hagerbensassi5766]

thank youuuu. You are so cute :)

[@dridzzzz_]

Dang wish she didn’t use yellow, I cant even see it