Suppose that both players discount future payoffs with the same discount factor ? < 1. Suppose that
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Suppose that both players discount future payoffs with the same discount factor ? < 1. Suppose that both players play the "Cooperative Strategy;" namely, they play C in every period, no matter what was the outcome in the previous period. Do these strategies form a Nash Equilibrium of the repeated game? For what values of ? ? Do they form an SPNE for some values of ? ? Find them all.
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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