The following is the prisoner's dilemma game.

C D

C -1, -1. -10, 0

D 0, -10. -6, -6

The prisoner's dilemma game is repeated twice and follows the following rules.

1. Two players play the prisoner's dilemma game in period 1

2. Both players observe the action profile chosen in period 1

3. Then, they repeat the prisoner's dilemma game in period 2

4. Payoffs are realized as the sum of payoffs for two periods

For example, if (D, C) is played in period 1 and (D, D) is played in period 2, player 1 obtains 0 + (6) = 6 and player 2 obtains (10) + (6) = 16

Q1. Derive a SPE in this game by applying backward induction. *Be sure to specify your argument.

Q2. What if the Prisoner's dilemma game is repeated for 3 periods?