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EXERCISE 443.1 (Delayed modified grim trigger strategies)) Choose a positive in- teger k and consider the strategy that chooses D in the first k periods of the game, regardless of the history, and then follows the modified grim trigger strategy, start- ing in state C. Find the range of values for the discount factor for which the strategy pair in which each player uses this strategy is a subgame perfect equilibrium.

EXERCISE 443.1 (Delayed modified grim trigger strategies)) Choose a positive in- teger k and consider the strategy that chooses D in the first k periods of the game, regardless of the history, and then follows the modified grim trigger strategy, start- ing in state C. Find the range of values for the discount factor for which the strategy pair in which each player uses this strategy is a subgame perfect equilibrium.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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? EXERCISE 443.1 (Delayed modified grim trigger strategies) Choose a positive in- teger k and consider the strategy that chooses D in the first k periods of the game, regardless of the history, and then follows the modified grim trigger strategy, start- ing in state C. Find the range of values for the discount factor for which the strategy pair in which each player uses this strategy is a subgame perfect equilibrium. C.D (D C,D D D C,D D
Transcribed Image Text:? EXERCISE 443.1 (Delayed modified grim trigger strategies) Choose a positive in- teger k and consider the strategy that chooses D in the first k periods of the game, regardless of the history, and then follows the modified grim trigger strategy, start- ing in state C. Find the range of values for the discount factor for which the strategy pair in which each player uses this strategy is a subgame perfect equilibrium. C.D (D C,D D D C,D D
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