Team 2 plays A Team 2 plays Team 1 plays A 0, 24 10, 10 Team 1 plays B 4, 4 24, 0 Consider the infinitely repeated version of the game above. Which of the follow the smallest discount factor such that the grim trigger strategy under which tear plays A and team 2 plays B until a team deviates, after which team 1 plays B fore and team 2 plays A forever is a Nash Equilibrium? O 1/100 1/2 01 3/4

Team 2 plays A Team 2 plays Team 1 plays A 0, 24 10, 10 Team 1 plays B 4, 4 24, 0 Consider the infinitely repeated version of the game above. Which of the follow the smallest discount factor such that the grim trigger strategy under which tear plays A and team 2 plays B until a team deviates, after which team 1 plays B fore and team 2 plays A forever is a Nash Equilibrium? O 1/100 1/2 01 3/4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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