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Consider the following game: two friends can decide if they go angling (A) or dancing (D). For angling, both friends prefer to go alone, while

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Consider the following game: two friends can decide if they go angling (A) or dancing (D). For angling, both friends prefer to go alone, while both would like to go dancing together. The table below shows the payoffs of this game. A D A 1,1 6,0 D 0,6 3,3 Consider the innitely repeated version of this game with discount factor 6. Assume the following strategy, for each player: \"Play D in the rst stage. In the tth stage, if the outcome of all t 1 preceeding stages has been (D, D), then play D, otherwise, play A.\" For which values of 6 is this strategy a subgameperfect Nash Equilibrium? [4 Points]

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