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:

game theory,extensive form games,subgame perfect equilibrium,backward induction,economics lectures,