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Both players discount their future payoffs by some number,r , where 0 < = r < = 1 . If both players adopt the Grim

Both players discount their future payoffs by some number,r

,

where

0 < =

< = 1 .

If both players adopt the Grim Trigger strategy,calculate the lowest value r can take for the strategy

profile to be a subgame perfect Nash equilibrium.Round your answer to two decimal places.

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