(b) If the game below is repeated twice, the following strategies form an SPNE when =...

Transcribed Image Text:

(b) If the game below is repeated twice, the following strategies form an SPNE when = 1: Strategies Player 1 period 1: Play C period 2: Play B if (C,Y) in stage 1. Play A otherwise. Player 2 period 1: Play Y period 2: Play Z if (C,Y) in stage 1. Play X otherwise. P2 22 X Y N A 2,3 7,2 0,-1 P1 B 1,1 1,3 4,4 C 1,6 6,5 2,1 (b) If the game below is repeated twice, the following strategies form an SPNE when = 1: Strategies Player 1 period 1: Play C period 2: Play B if (C,Y) in stage 1. Play A otherwise. Player 2 period 1: Play Y period 2: Play Z if (C,Y) in stage 1. Play X otherwise. P2 22 X Y N A 2,3 7,2 0,-1 P1 B 1,1 1,3 4,4 C 1,6 6,5 2,1

Answer rating: 100% (QA)

To determine the Subgame Perfect Nash Equilibrium SPNE in the repeated game described we need to ana... View the full answer