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Consider an infinitely repeated game in which the following game is played in every stage. Players discount future payoffs with a factor of 8.

Consider an infinitely repeated game in which the following game is played in every stage. Players discount future payoffs with a factor of 8. Player 1 Fight Hug Player 2 Fight Hug 8,8 40, 14 14,40 30, 30 If we want players to play (Hug, Hug) in every stage of a subgame perfect equilibrium outcome, what is the lowest possible discount factor ? Round your answer to 2 decimal places.

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