The following game is repeated infinitely many times with a discount factor . Player 2 Blue...

Transcribed Image Text:

The following game is repeated infinitely many times with a discount factor . Player 2 Blue Red Player 1 Blue 15,15 5,20 Red 8,25 12, 14 When & is sufficiently close to 1: Let A denote the highest average payoff player 2 can receive in some SPE. Let B denote the lowest average payoff player 2 can receive in some SPE. Calculate A - B (A minus B) and enter the result in the box below. Please round your answer to 2 decimal places. The following game is repeated infinitely many times with a discount factor . Player 2 Blue Red Player 1 Blue 15,15 5,20 Red 8,25 12, 14 When & is sufficiently close to 1: Let A denote the highest average payoff player 2 can receive in some SPE. Let B denote the lowest average payoff player 2 can receive in some SPE. Calculate A - B (A minus B) and enter the result in the box below. Please round your answer to 2 decimal places.