About the Course
This course is an introduction to game theory and strategic thinking. Ideas such as dominance, backward induction, Nash equilibrium, evolutionary stability, commitment, credibility, asymmetric information, adverse selection, and signaling are discussed and applied to games played in class and to examples drawn from economics, politics, the movies, and elsewhere.
Course Structure
This Yale College course, taught on campus twice per week for 75 minutes, was recorded for Open Yale Courses in Fall 2007.
https://oyc.yale.edu/economics/econ-159
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About the Course
This course is an introduction to game theory and strategic thinking. Ideas such as dominance, backward induction, Nash equilibrium, evolutionary stability, commitment, credibility, asymmetric information, adverse selection, and signaling are discussed and applied to games played in class and to examples drawn from economics, politics, the movies, and elsewhere.
Course Structure
This Yale College course, taught on campus twice per week for 75 minutes, was recorded for Open Yale Courses in Fall 2007.
https://oyc.yale.edu/economics/econ-159
Lecture 15
- Backward Induction: Chess, Strategies, and Credible Threats
Yale Open Courses ECON 159: Game Theory
1 hour 12 minutes 38 seconds
7 years ago
Lecture 15
- Backward Induction: Chess, Strategies, and Credible Threats
We first discuss Zermelo’s theorem: that games like tic-tac-toe or chess have a solution. That is, either there is a way for player 1 to force a win, or there is a way for player 1 to force a tie, or there is a way for player 2 to force a win. The proof is by induction. Then we formally define and informally discuss both perfect information and strategies in such games. This allows us to find Nash equilibria in sequential games. But we find that some Nash equilibria are inconsistent with backward induction. In particular, we discuss an example that involves a threat that is believed in an equilibrium but does not seem credible.
Yale Open Courses ECON 159: Game Theory
About the Course
This course is an introduction to game theory and strategic thinking. Ideas such as dominance, backward induction, Nash equilibrium, evolutionary stability, commitment, credibility, asymmetric information, adverse selection, and signaling are discussed and applied to games played in class and to examples drawn from economics, politics, the movies, and elsewhere.
Course Structure
This Yale College course, taught on campus twice per week for 75 minutes, was recorded for Open Yale Courses in Fall 2007.
https://oyc.yale.edu/economics/econ-159
