Find conditions on the discount factor

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Find conditions on the discount factor under which cooperation can be supported in the infinitely repeated games with the following stage games.

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The question delves into the repeated case of Prisoner's dilemma in Game Theory in which rounds may go on infinite times. At first place it makes us think as to how can a game go on for infinite times. But there are situations in businesses and human life where lack of information forces both the parties to agree to a solution win-win for both but not in best individual interests. Every company or group in a business thrives to make highest profits but also to sustain its functioning in the long run in the competition.

Reference no: EM131250338

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