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Use the following setting for questions 1-3. Consider the following static game: IlL'C RI _M_l_2,1 1,2 3,1_| _ B l 1,2 l 0,1 . 4,4_l

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Use the following setting for questions 1-3. Consider the following static game: IlL'C RI _M_l_2,1 1,2 3,1_| _ B l 1,2 l 0,1 . 4,4_l Suppose this game is played for two periods. At the beginning of period 2, the players can observe the outcome from period 1. There is no discounting. 1. First, assume only pure-strategy SPNE such that either player's second period strategy DOES NOT depend on the rst period outcome. How many such SPNE are in this game? (a) (b) ( ) (d) l (e none C unwrap

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