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1. Repeated Coordination game (8 points). Consider the following payoff matrix: Player 2 Player 1 a) Find the Nash equilibria assuming that this is a
1. Repeated Coordination game (8 points). Consider the following payoff matrix: Player 2 Player 1 a) Find the Nash equilibria assuming that this is a simultaneous, static (oneperiod) game. (2 points). b) Suppose the players know that this game will be repeated three times, so this is a three-period game. Can playing (A, D) or (B, C) in the third period be a part of the SPNE? Explain. (3 points). 0) Suppose the players know that this game will be repeated three times, so this is a threeperiod game. Can playing (A, D) or (B, C) in the rst period he a part of the SPNE? Explain. (3 points)
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