Consider the stage game below. The game is repeated once (i.e. played twice). Find all the SPNE in pure strategy of that game. Make sure to explain why you ruled out some of the non-Nash profiles.

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Chapter1: Making Economics Decisions
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Consider the stage game below. The game is repeated once (i.e. played twice). Find all
the SPNE in pure strategy of that game. Make sure to explain why you ruled out some of the
non-Nash profiles.
P1
U
M
D
P2
L
CR
9,5
1,7 2,8
1, 2 0,0 1,3
1, 03, 30, 1
Transcribed Image Text:Consider the stage game below. The game is repeated once (i.e. played twice). Find all the SPNE in pure strategy of that game. Make sure to explain why you ruled out some of the non-Nash profiles. P1 U M D P2 L CR 9,5 1,7 2,8 1, 2 0,0 1,3 1, 03, 30, 1
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