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Lecture 19 - Subgame Perfect Equilibrium: Matchmaking and Strategic Investments

Applies subgame-perfect equilibrium to examples involving mistakes, matchmaking and investment, including how an investment changes competitors’ choices.

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Why it is here

Provides worked practice after the formal definition; compare an action’s direct effect with the indirect effect produced by other players’ responses.

Selection basis: institutional collection. Reason checked 2026-11-07 by agent.

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Level basis
Editorial judgement: the official course requires introductory microeconomics and uses one-variable calculus, probability and expectation. The introductory subject title does not mean that no preparation is needed.
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Provenance and reuse

Open Yale Courses; original source https://oyc.yale.edu/economics/econ-159/lecture-19. Link by default. Source terms require credit to original faculty, Yale and the course URL, plus licence. Inspect individual credits before copying. Commercial reuse and third-party assets require separate review.. Links, factual metadata and original navigation annotations only. No source page, transcript, image, video or restricted platform metadata is included in the reusable export.

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    Official lecture Overview paragraph. Transcript is linked or included on the page but was not read in full; video not viewed. Retrieved 2026-11-07.

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    About the Course and Requirements sections read, including explicit mathematics and economics prerequisites. Retrieved 2026-11-07.

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