The following game is a version of the Prisoners’ Dilemma, but the payoffs are slightly different than in Figure 8.1.

Suspect 2 Fink Silent Suspect 1 Fink 0, 0 3, −1 Silent −1, 3 1, 1

a. Verify that the Nash equilibrium is the usual one for the Prisoners’ Dilemma and that both players have dominant strategies.

b. Suppose the stage game is repeated infinitely many times.

Compute the discount factor required for their suspects to be able to cooperate on silent each period. Outline the trigger strategies you are considering for them.