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Question 3: Consider the following game X Y Z 3,3 0,0 0,0 0,0 5,5 9,0 0,0 0,9 8,8 Players play this game twice (1:0 and
Question 3: Consider the following game X Y Z 3,3 0,0 0,0 0,0 5,5 9,0 0,0 0,9 8,8 Players play this game twice (1:0 and 1:1) Now consider the following strategy prole Player 1: Play C at 1:0; at t=1 Play B if (C, Z) is played at 1:0, and A otherwise. Player 2: Play Z at t=0; at t=1 play Y if (C, Z) is played at t=0, and X otherwise. Is this a subgame perfect Nash equilibrium of the repeated game? (25 marks)
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