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Consider the following conflict game. [30 marks] No fight Fight less Fight more Player 2 No fight Fight less 40, 40 0,70 70,0 30, 30
Consider the following conflict game. [30 marks] No fight Fight less Fight more Player 2 No fight Fight less 40, 40 0,70 70,0 30, 30 60,0 50, 10 Fight more 0, 60 10, 50 20, 20 Player 1 a) [5 marks] This is a one-shot game. What is the best response function of each player? Find all the Nash equilibria and explain. b) [5 marks] Now, this game is repeated for 20 times. What are the sub-game perfect Nas h equilibria of this repeated game? Explain your answer. c) [20 marks] Now the game is repeated for infinite times. What would be the mechanism to reach any other equilibrium than Q5 b)? Explain in detail
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