Consider the following pay-off matrix in the repeated yak grazing game:

Bs strategies

4 yaks 5 yaks

As strategies 4 yaks	220 220	300 200
5 yaks	200 300	280 280

1. Describe the Nash equilibrium in this game. (3 points)

2. What is the cooperative outcome? (2 points)

3. Is this choice in section (b) stable when the game is repeated finite times? Explain. (3 points)

4. For what level of discount factor both players would find it attractive to adopt cooperative trigger strategies with an infinite number of repetitions? (4 points)