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Consider the innitely repeated game with discount factor 6 = 0.99 and the following stage game (in which the players are trading favors): Give Keep
Consider the innitely repeated game with discount factor 6 = 0.99 and the following stage game (in which the players are trading favors): Give Keep Give Keep 0,0 0 Find a subgame perfect equilibrium under which Player 1's payoff in the re peated game is strictly more than 1/ (1 6). Verify that your strategy prole is indeed a subgame-perfect Nash equilibrium. 0 Is there a subgame perfect equilibrium in which Player 1's payoff in the repeated game is strictly more than 3/ 2(1 6)
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