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Question 2 Consider the following game between One (who chooses rows) and Two (who chooses columns) L M R U m 0,1 D 2,2 1,1

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Question 2 Consider the following game between One (who chooses rows) and Two (who chooses columns) L M R U m 0,1 D 2,2 1,1 3. Find the Nash equilibria of the one-shot game. Now imagine that the game is repeated innitely often, with discount factor 5 near to 1. b. Construct a pure strategy Nash equilibrium with a different (from the ones found in a.) average payoff. c. Characterize the set of possible subgame perfect equilibrium payoff in the limit when 8 a 1 (N 0 construction or proof are required here.)

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