Find all the pure strategy subgame perfect equilibria

Reference no: EM131252636

Multistage Practice:

Consider the following simultaneous-move game that is played twice (the players observe the first-period outcome prior to the second period play):

430_Figure 03.jpg

a. Find all the pure-strategy subgame-perfect equilibria with no discounting (δ = 1). Be precise in defining history-contingent strategies for both players.

b. For each of the equilibria you found in (a), find the smallest discount factor that supports it.

Reference no: EM131252636

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