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Use the following normal - form game to answer the questions below. Player 2 Strategy C D Player 1 A 4 0 , 4 0
Use the following normalform game to answer the questions below.
Player
Strategy C D
Player A
B
a Identify the oneshot Nash equilibrium.
multiple choice
BD
BC
AD
AC
b Suppose the players know this game will be repeated exactly three times. Can they achieve payoffs that are better than the oneshot Nash equilibrium?
multiple choice
No
Yes
c Suppose this game is infinitely repeated and the interest rate is percent. Can the players achieve payoffs that are better than the oneshot Nash equilibrium?
multiple choice
No
Yes
d Suppose the players do not know exactly how many times this game will be repeated, but they do know that the probability the game will end after a given play is theta If theta is sufficiently low, can players earn more than they could in the oneshot Nash equilibrium?
multiple choice
No
Yes
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