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Use the following normal-form game to answer the questions below. Player 2 Strategy C D A 35, 35 90, 10 Player 1 B 10, 90
Use the following normal-form game to answer the questions below. Player 2 Strategy C D A 35, 35 90, 10 Player 1 B 10, 90 40, 40 a. Identify the one-shot Nash equilibrium. O (B,D) O ( B,C) O ( A, D) O ( 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? O Yes O No c. Suppose this game is infinitely repeated and the interest rate is 7 percent. Can the players achieve payoffs that are better than the one-shot Nash equilibrium? O Yes
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