2. Consider the following normal form game: (a) (b) a, b (: Find at least three NE for the static game and calculate the corresponding NE payoffs for both players. Suppose that the above described stage-game is played twice (the players observe each others action choices for the rst round before the second round). A player's payoff is the undiscounted sum of the payoffs form both rounds. Is this a game of perfect information? (No need to draw the game tree). Consider the twiceplayed game. Construct some SPE strategies such that (C, c) is played in the first stage. What are the expected payoffs in that equlibrium? Compare with part (a). (Hint. Use a bad stage NE as the fpunishment' and a good NE as the 'reward'.)