Lecture 17 - Backward Induction: Ultimatums and Bargaining

Yale Open Courses ECON 159: Game Theory by William Sheppard

Jun 8, 201801:10:44Education

We develop a simple model of bargaining, starting from an ultimatum game (one person makes the other a take it or leave it offer), and building up to alternating offer bargaining (where players can make counter-offers)....

Related Episodes

Continue listening to more episodes from Yale Open Courses ECON 159: Game Theory.

Lecture 24 - Asymmetric Information: Auctions and the Winner's Curse

Jun 8, 2018 - 01:02:28

We discuss auctions. We first distinguish two extremes: common values and private values. We hold a commo...

Lecture 23 - Asymmetric Information: Silence, Signaling and Suffering Education

Jun 8, 2018 - 01:10:36

We look at two settings with asymmetric information; one side of a game knows something that the other si...

Lecture 22 - Repeated Games: Cheating, Punishment, and Outsourcing

Jun 8, 2018 - 01:15:46

In business or personal relationships, promises and threats of good and bad behavior tomorrow may provide...

Lecture 21 - Repeated Games: Cooperation vs. the End Game

Jun 8, 2018 - 01:15:18

We discuss repeated games, aiming to unpack the intuition that the promise of rewards and the threat of p...

Lecture 20 - Subgame Perfect Equilibrium: Wars of Attrition

Jun 8, 2018 - 01:15:36

We first play and then analyze wars of attrition; the games that afflict trench warfare, strikes, and bus...

Lecture 19 - Subgame Perfect Equilibrium: Matchmaking and Strategic Investments

Jun 8, 2018 - 01:17:08

We analyze three games using our new solution concept, subgame perfect equilibrium (SPE). The first game...

Lecture 18 - Imperfect Information: Information Sets and Sub-Game Perfection

Jun 8, 2018 - 01:15:57

We consider games that have both simultaneous and sequential components, combining ideas from before and...

Lecture 16 - Backward Induction: Reputation and Duels

Jun 8, 2018 - 01:15:40

In the first half of the lecture, we consider the chain-store paradox. We discuss how to build the idea o...