In the first half of the lecture, we consider the chain-store paradox. We discuss how to build the idea of reputation into game theory; in particular, in setting like this where a threat or promise would otherwise not be credible. The key idea is that players may not be completely certain about other players' payoffs or even their rationality. In the second half of the lecture, we stage a duel, a game of pre-emption. The key strategic question in such games is when; in this case, when to fire. We use two ideas from earlier lectures, dominance and backward induction, to analyze the game.

We first discuss Zermelo's theorem: that games like tic-tac-toe or chess have a solution. That is, either there is a way for player 1 to force a win, or there is a way for player 1 to force a tie, or there is a way for player 2 to force a win. The proof is by induction. Then we formally define and informally discuss both perfect information and strategies in such games. This allows us to find Nash equilibria in sequential games. But we find that some Nash equilibria are inconsistent with backward induction.

We first apply our big idea--backward induction--to analyze quantity competition between firms when play is sequential, the Stackelberg model. We do this twice: first using intuition and then using calculus. We learn that this game has a first-mover advantage, and that it comes commitment and from information in the game rather than the timing per se. We notice that in some games having more information can hurt you if other players know you will have that information and hence alter their behavior. Finally, we show that, contrary to myth, many games do not have first-mover advantages.

We consider games in which players move sequentially rather than simultaneously, starting with a game involving a borrower and a lender. We analyze the game using "backward induction." The game features moral hazard: the borrower will not repay a large loan. We discuss possible remedies for this kind of problem. One remedy involves incentive design: writing contracts that give the borrower an incentive to repay. Another involves commitment strategies; in this case providing collateral. We consider other commitment strategies such as burning boats.

In this second lecture on Lycidas, moments of intrusion and revelation are closely examined. Saint Peter's protracted sermon is connected with the wider context of Puritan practices and controversies. The poem's tendency to suggest pairs and substitutions is duly noted. Finally, its conclusion is read as a triumphant moment in the young Milton's poetry, at which point he parts with the claims of ill-preparedness and little experience that dominated the early poems and assumes instead a prophetic voice for himself akin to Isaiah's.

Milton's first publication, A Mask Presented at Ludlow Castle, is examined. Milton's vision of a poet's heaven in Ad Patrem, paired with the letter to Charles Diodati, with its particular emphasis on the need for chastity in poets, is used as a springboard to a discussion of the depiction of sexual ideals in the masque. Revelation 14, 1 Corinthians, and the Apology for Smectymnuus are also discussed at length, as are the poet's biography and the history of the masque's title.

In this final lecture on Paradise Lost, Book Twelve's justification for the expulsion of Adam and Eve from the garden is examined alongside the Genesis account. The nature of Milton's God, whether literal or liberal, is examined at length. The poem's closing lines are closely read, with substantial attention paid to Milton's final, complicated take on the poem-long consideration of Providence and free will.

This second lecture on the Fall traces Milton's use of the word < em>wander, in all of its forms, across the poem. The transformation of wander from its pre-fallen sense to its more nefarious incarnation following the transgression is examined closely. The wider literary context of the concept of wandering, with particular emphasis placed on its importance to the romance genre, is briefly discussed.

Books Eleven and Twelve of Paradise Lost and their radical departure from the poem's previous style are discussed. The transformation of Milton's famously sonorous verse into a more didactic mode is closely documented, and the poem's increasing emphasis on visual instruction is underscored in a study of the Archangel Michael's lesson on the history of the post-fallen world. Considerable time is devoted to both a consideration of Milton's late politics and Book Eleven's depiction of the destruction of paradise.

Book Nine and the depiction of the Fall are presented. Adam and Eve's dialogue -- especially their perspectives on labor, temptation, and the nature of the garden -- is examined. Satan's strategic temptation of Eve is closely analyzed. At the lecture's conclusion, Adam and Eve's new fallen sight is discussed, with particular emphasis placed on the reference to the "veil" of pre-fallen innocence. Overall, the tension between doctrinal and subversive perspectives on the pre-fallen hierarchy of Eden is underscored.