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

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  • Опубліковано 7 лют 2025
  • 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...

КОМЕНТАРІ • 78

  • @gbproofdoe
    @gbproofdoe 7 років тому +57

    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
    @Linda-kq9py 3 роки тому +2

    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
    @jayMbodybuilding 9 років тому +98

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

  • @sheenusharma6137
    @sheenusharma6137 10 років тому +7

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

  • @MikiForester
    @MikiForester 12 років тому +7

    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.

  • @jdog25140
    @jdog25140 13 років тому +1

    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.

  • @anthonya6044
    @anthonya6044 11 років тому +8

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

  • @cristoferlopez-vargas3552
    @cristoferlopez-vargas3552 4 роки тому

    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.

  • @blhfs
    @blhfs 3 роки тому

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

  • @JQMurrell
    @JQMurrell 10 років тому

    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!

  • @1xXitachiXx1
    @1xXitachiXx1 12 років тому

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

  • @sadainraza1818
    @sadainraza1818 4 роки тому

    who else is watching and appreciating the teacher in 2021?

  • @boonboonli3662
    @boonboonli3662 12 років тому

    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....

  • @kimmyb9
    @kimmyb9 8 років тому

    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!

  • @tommy-lee-johnes
    @tommy-lee-johnes 11 років тому +1

    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

  • @Surrealiantx
    @Surrealiantx 3 роки тому

    Love this! The Harry Potter references helped a lot!

  • @simon5543
    @simon5543 10 років тому

    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!

  • @ar20804
    @ar20804 3 роки тому

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

  • @Jankom93
    @Jankom93 7 років тому

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

  • @westronic
    @westronic 10 років тому

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

  • @Thelushable
    @Thelushable 11 років тому

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

  • @tmpettig
    @tmpettig 11 років тому

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

    • @tarek6545
      @tarek6545 5 років тому

      Thank you 😊🙏🙏🙏🙏

  • @amexander88
    @amexander88 11 років тому +1

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

  • @piggod812
    @piggod812 4 роки тому

    a very old video, but an excellent one

  • @imadedinehakim443
    @imadedinehakim443 5 років тому

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

  • @obluscurepodcast2165
    @obluscurepodcast2165 Рік тому +1

    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.

  • @Sabsterjoon
    @Sabsterjoon 14 років тому

    Excellent video Sir!

  • @ipitythefool97
    @ipitythefool97 8 років тому

    really helpful - way better than my professor

  • @SlickNick8686
    @SlickNick8686 12 років тому

    Excellent explanation.

  • @hailongxie
    @hailongxie 10 років тому

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

  • @zacharyklement3823
    @zacharyklement3823 5 років тому

    You killed this! Thank you so much man

  • @_ghada98
    @_ghada98 4 роки тому

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

  • @Garrettthethief
    @Garrettthethief 9 років тому

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

  • @biodunliadi1260
    @biodunliadi1260 9 років тому +1

    thank you bro, you have actually ended my nightmare

  • @Jacqui8000
    @Jacqui8000 14 років тому

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

  • @BloodEredar
    @BloodEredar 13 років тому

    Thank you very much for making these videos!

  • @obadasy2163
    @obadasy2163 5 років тому

    Thank you so much for this great work.

  • @Tanukisaint
    @Tanukisaint 15 років тому

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

  • @unikal4e
    @unikal4e 11 років тому

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

  • @FenderAddict93
    @FenderAddict93 11 років тому

    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

  • @memorablename5187
    @memorablename5187 8 років тому +1

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

  • @guzaltoktieva5523
    @guzaltoktieva5523 5 років тому

    U are the best. Thank u :)

  • @rym21
    @rym21 13 років тому

    HELPED A LOT!

  • @mijacr
    @mijacr 5 років тому +1

    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
      @mijacr 5 років тому

      Harry can do a credible threat then I guess

    • @obluscurepodcast2165
      @obluscurepodcast2165 Рік тому

      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.

  • @sammcmanus9102
    @sammcmanus9102 7 років тому

    You're a legend. Thankyou

  • @biunguyen308
    @biunguyen308 12 років тому +1

    you made my day, thank you so much!

  • @orejatto
    @orejatto 4 роки тому

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

  • @aphantomfire
    @aphantomfire 12 років тому

    I'M LEARNING!

  • @hankb8978
    @hankb8978 10 років тому

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

    • @FuzzyAason
      @FuzzyAason 10 років тому

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

  • @kunjaai
    @kunjaai 3 роки тому

    How that number 5 you choose??

  • @jin37uk
    @jin37uk 15 років тому

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

  • @zerohero109
    @zerohero109 6 років тому

    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?

  • @sushmitha2537
    @sushmitha2537 6 років тому

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

  • @Plokijuh1229
    @Plokijuh1229 4 роки тому

    This video is fucking god tier

  • @danieltamasi7517
    @danieltamasi7517 8 років тому

    thx! great explanation!

  • @PritamThakur
    @PritamThakur 11 років тому

    Thanks a lot for the video :)

  • @HaroonKhan-jk3fh
    @HaroonKhan-jk3fh 8 років тому

    This guy is pretty gangster, brilliant vid

  • @yellowsocksification
    @yellowsocksification 6 років тому

    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
      @boonooi2211 6 років тому +1

      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.

  • @vigelic
    @vigelic 13 років тому

    THANK YOU SO MUCH!

  • @celenachang5555
    @celenachang5555 6 років тому

    thank you!

  • @wraine999
    @wraine999 14 років тому

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

  • @AE-is4rj
    @AE-is4rj 8 років тому

    perfect!

  • @julianatews
    @julianatews 7 років тому

    Great! :)

  • @globalwarming08
    @globalwarming08 7 років тому

    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

  • @remyscheren7984
    @remyscheren7984 8 років тому

    thanks cedric diggory

  • @AMNG1994
    @AMNG1994 9 років тому +2

    SECTUMSEMPRA, not SEPTUMSEMPRA :D

  • @googleuser6485
    @googleuser6485 9 років тому

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

  • @anjamoskon
    @anjamoskon 11 років тому

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

  • @zes7215
    @zes7215 6 років тому

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

  • @DRDANKIES
    @DRDANKIES 13 років тому

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

  • @Ghetto_einstein
    @Ghetto_einstein 7 років тому

    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.