Exercise 23.17. * (1) Generalize Proposition 23.10 to non-symmetric Markovian strategies. (2) Now consider any subgame perfect
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Exercise 23.17. * (1) Generalize Proposition 23.10 to non-symmetric Markovian strategies. (2) Now consider any subgame perfect equilibria. Show that for β sufficiently high, subgame perfect equilibria that are on the Pareto frontier for the lite (meaning that it is impossible to make one elite agent better off without making another one worse off), have the same qualitative features as the equilibrium in Proposition 23.10.
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