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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 normal-form game to answer the questions below.
Player 2
Strategy C D
Player 1 A 40,4090,10
B 10,9045,45
a. Identify the one-shot Nash equilibrium.
multiple choice 1
(B,D)
(B,C)
(A,D)
(A,C)
b. Suppose the players know this game will be repeated exactly three times. Can they achieve payoffs that are better than the one-shot Nash equilibrium?
multiple choice 2
No
Yes
c. Suppose this game is infinitely repeated and the interest rate is 6 percent. Can the players achieve payoffs that are better than the one-shot Nash equilibrium?
multiple choice 3
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 one-shot Nash equilibrium?
multiple choice 4
No
Yes

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