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Q2. Consider the following conflict game. [30 marks] Player 2 No fight Fight less Fight more No fight 40, 40 0, 70 0, 60 Fight
Q2. Consider the following conflict game. [30 marks] Player 2 No fight Fight less Fight more No fight 40, 40 0, 70 0, 60 Fight less 70, 0 30, 30 10, 50 Player 1 Fight more 60, 0 50, 10 20, 20 a) [5 marks] This is a one-shot game. What is the best response function of each player? Find all the Nash equilibria and explain. b) [5 marks] Now, this game is repeated for 20 times. What are the sub-game perfect Nas h equilibria of this repeated game? Explain your answer. c) [20 marks] Now the game is repeated for infinite times. What would be the mechanis m to reach any other equilibrium than Q5 b)? Explain in detail
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