question:

Consider the following "war of attrition" game. Interaction between play ers 1 and 2 takes place over discrete periods of time, starting in period 1. In each period, players choose between "stop" (S) and "continue" (C) and they receive payoffs given by the following stagegame matrix: The length of the game depends on the players' behavior. Specically, if one or both players select S in a period, then the game ends at the end of this period. Otherwise, the game continues into the next period. Suppose the players discount payoffs between periods according to discount factor 5. Assume x