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Consider a one period game where two team members have two strategies - to give high effort or low effort. If both give high effort
Consider a one period game where two team members have two strategies - to give high effort or low effort. If both give high effort the payoff is $10,000 for each. If they both give low effort their payoff is $5000 each. If one gives low effort and the other high effort, the one who gives low effort gets $15000 and the one who gives high effort gets 0. Write out a multi period payoff matrix by using the technique used in class. Assume that one who starts with low effort continue with low effort and the others use a "tit for tat" strategy. Compute a "break-even probability" of future interaction that would induce cooperation
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