Player1/2 A. B C

A 2,2. 2,1 0,0

B. 1,2. 1,1 -1,0

C. 0,0 0,-1 -1,-1

Question: Prove that for some values of the discount factor, the following strategy supports (B,B) as the Nash Equilibrium outcome if the game is repeated infinitely: "Play B in every period unless someone deviates. If someone deviates, play C forever."