Following on from week 2's short clip on PDIP and the 6 questions we introduce a simple sequential 2 player 2 move game - first in an abstract form using "cards" in class with both money and chocolate bar payoffs, then by telling a story about an attempt to deter entry of a competitor by investment in large capacity . Both stories have similar strategic structure...revealled in their game trees. Ina separate, subsequent clip for week 2 we introduce the idea of rolback reasoning - backward induction - to analyze this game. Note that the reasoning processes given by students in the classroom game is/was a great example of intuition based on rollback reasoning.

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