4.(5 points) Refer to the normal-form game of price competition in the payoff matrix below.

Suppose the game is infinitely repeated, and the interest rate is 10 percent. Both firms agree to charge a high price, provided no player has charged a low price in the past. This collusive outcome will be implemented with a trigger strategy that states that if any firm cheats, then the agreement is no longer valid and each firm may make independent decisions. Will the trigger strategy be effective in implementing the collusive agreement? Please explain and show all necessary calculations.

Low Price High Price Low Price 0.0 50 10 High Price 10. 50 20, 20