Reference no: EM133129537
Find the strategies that survive iterated elimination of strictly dominated strategies and at least one Nash Equilibria (in pure strategies or mixed strategies) in each of the following two normal-form games:
(a) Player 1 Player 2 L C R T 0, -3 3, 2 -7, -4 M 1, 5 4, 8 6, 7 B 0, 8 5, 5 4, 9
(b) Player 1 Player 2 D E F A 0, 4 2, 3 2, 3 B 5, 1 3, 2 4, 4 C 5, 5 1, 6 1, 2
(c) Is it possible that the action profile (C,D) is played in every round (t = 1, 2, . . .) in a subgame perfect equilibrium on the infinitely repeated game (T = ∞) in which two players play the game from part (b) in each round (observing past play) and discount payoffs with a common discount factor δ ∈ (0, 1) per period? If yes, find the lowest δ for which such an equilibrium exists. If no, explain why not.
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