1. Would it be possible to maintain trust using the Grim Trigger strategy in the following game if the probability of repeated play is:

a. 55%?

b. How about if it's 70%?

c. If the {Trust,Use} payoff changed from 7 to 0, would this make it easier or harder to maintain cooperation? Explain

	Trust	Use
Trust	12, 12	7, 15
Use	15, 7	9, 9

2. The land of Erimia has a large number of nomadic traders that travel from town to town selling their wares. Frequently, two traders will be in the same town at the same time. Each trader either always keeps their prices high or always keeps them low. If a trader sees that they are doing consistently worse than their competitor, they will switch strategies. If the traders' payoffs are as follows, what fraction of traders will eventually adopt the always high strategy?

	High	Low
High	2, 2	0, 3
Low	3, 0	-4, -4

3. Find all Nash Equilibria. How will an increase iny change the amount that the column player chooses to listen?

	Listen	Ignore
Gossip	0, 0	1, -y
Teach	y, -1	0, 0

4. Find the Subgame Perfect Nash Equilibrium.