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3. Consider the stage game below Player 2 D E F A 1, 1 1, 1 1, 1 Player I B 1 , 8 7,

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3. Consider the stage game below Player 2 D E F A 1, 1 1, 1 1, 1 Player I B 1 , 8 7, 5 1, 1 C 5, 7 8,3 1, 1 (a) Find all the stage NE in pure strategies. (b) Suppose the stage game is repeated infinitely many times. Is there any SPNE in which players play (C,E) in every period? If yes, find it and prove it is an equilibrium. If not, explain why not

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