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Consider the game in strategic form above between player 1 (the row player) and player 2 (the column player) a) Suppose the stage game

  

Consider the game in strategic form above between player 1 (the row player) and player 2 (the column player) a) Suppose the stage game above is played twice (T=2). Is there any SPNE in which players play the action profile (D,H) in both periods? Is there any SPNE in which players play (D,H) in the first period? Explain. b) Now suppose that the stage game above is repeated infinitely many times. Is there any SPNE in which players play the action profile (D,H) in every period? If yes, find it and show it is a SPNE. If not, explain why not. c) One more time, suppose the stage game above is repeated infinitely many times. Is there any SPNE in which players play (D,E) in odd periods and (A,H) in even periods? If yes find it and show it is SPNE. If not, explain why not. 1 A B 2 E F G 3,0 2,1 5,3 4,6 0,0 4,2 0,3 0,10 2,4 3,3 1,2 3,3 H 10,0 3,3 6,4 9,9

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aNo there is not a SPNE in which players play the action profile DH in both periods The reason for t... blur-text-image
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