Qs. 4

Indicate which statement is true and which is false. If false, state the correct statement. (10)

(a) In a finitely repeated game with multiple Nash Equilibrium of the stage game, cooperation can never be

achieved.

(b) In a infinitely repeated game, Nash Equilibrium might not be the outcome of the SPNE of any stage.

(c) In a static game of incomplete information, the type or state of the player i is observed both by i and i.

(d) The higher the discount factor the more patient the individual is.

(e) If a stage game has unique Nash Equilibrium and the game is repeated for finite times, the SPNE will

include the same NE in all the stages.