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Explore subgame perfect equilibrium (SPE) through three game theory examples in this Yale University lecture. Analyze a trust game with three Nash equilibria, discovering how only one aligns with backward induction. Examine a matchmaking scenario, constructing multiple SPEs by rolling back equilibrium payoffs from the dating subgame. Investigate a firm's strategic investment decision, revealing the significant impact of choices on competing firms. Gain insights into game theory applications and strategic decision-making across various scenarios.
