Question: 6. Consider the Prisoner's Dilemma below. When relevant, the discount factor is o. Player 2 m f M 4,4 -1,5 Player 1 F 5, -1

6. Consider the Prisoner's Dilemma below. When

6. Consider the Prisoner's Dilemma below. When relevant, the discount factor is o. Player 2 m f M 4,4 -1,5 Player 1 F 5, -1 1, 1 a. Explain what a Dominant Strategy Equilibrium is and solve the above game using that concept. b. Suppose players 1 and 2 play a finitely repeated Prisoner's Dilemma, playing 5 times and then stopping. List any and all Subgame Perfect Nash Equilibria. c. Suppose the game repeats indefinitely. Construct a SPNE with "Grim trigger" strategies where both sides play mum (M/m) forever on the equilibrium path. d. What is the lowest possible & that supports such an equilibrium? 6. Consider the Prisoner's Dilemma below. When relevant, the discount factor is o. Player 2 m f M 4,4 -1,5 Player 1 F 5, -1 1, 1 a. Explain what a Dominant Strategy Equilibrium is and solve the above game using that concept. b. Suppose players 1 and 2 play a finitely repeated Prisoner's Dilemma, playing 5 times and then stopping. List any and all Subgame Perfect Nash Equilibria. c. Suppose the game repeats indefinitely. Construct a SPNE with "Grim trigger" strategies where both sides play mum (M/m) forever on the equilibrium path. d. What is the lowest possible & that supports such an equilibrium

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