In real life, players do not always make moves simultaneously. We now shift to games in which players take turns moving and reacting to each other. We also introduce a refinement of Nash equilibrium--subgame perfection--and a common method for solving these games, backward induction.

1. Selten's Game and Subgame Perfect Equilibrium
2. Matrices versus Game Trees 
3. Backward Induction
   1. How NOT to Write a Subgame Perfect Equilibrium 
   2. Pirates!
   3. Nim
   4. Application: How to Fly on a Plane with an Empty Seat Next to You for Free
   5. Application: Words with Friends/Scrabble 
4. Extrapolation 
   1. Converting Extensive Form to Strategic Form
5. Commitment Problems 
6. Tying Hands 
7. The Centipede Game 
   1. Problems with Backward Induction