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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
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 |
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Describe the Nash equilibrium in this game. (3 points)
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What is the cooperative outcome? (2 points)
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Is this choice in section (b) stable when the game is repeated finite times? Explain. (3 points)
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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)
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