Consider the alternative version of the Prisoner-Revenge game in which the order of the games is rever versed, i.e.,…

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Consider the alternative version of the Prisoner-Revenge game in which the order of the games is rever versed, i.e.,…

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Consider the alternative version of the Prisoner-Revenge game in which the

order of the games is rever

versed, i.e., the multistage game in which first they

play

and then they play

1

0,0

G -1,-4

P1 L

P2

P1 M

F

m

4,4

5, -1

9

-4, -1

-3, -3

P2

f

-1,5

1,1

Suppose that both players discount payoffs using the same discount factor d

in [0, 1]. What are the pure SPNE of the multistage game? Does the answer

depend on the value of 8?

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