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2. Consider the following game: Player 3 76,5 4,0,0 D 4,0,0 55,4(1,0,0 99k (a) Identify all pure-strategy Nash equilibria assuming & = 1. (3 marks)
2. Consider the following game: Player 3 76,5 4,0,0 D 4,0,0 55,4(1,0,0 99k (a) Identify all pure-strategy Nash equilibria assuming & = 1. (3 marks) (b) Identify all Pareto efficient outcomes of the game for = 1. (3 marks) (c) Suppose the game is played twice. Is there a subgame perfect Nash equilibrium (or equilibria) which involves an outcome in the first stage which is not a Nash equilibrium in the one-off stage game assuming players do not discount period 2 payoffs and that k=17 (6 marks) (d) Suppose again that the game is played twice. For which values of & is there a subgame perfect Nash equilibrium in which players play (D, R, B) in period 1 and (U, L, B) in period 27 (6 marks)
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