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4. Consider the following stage game. Suppose it is repeated two times. Assume that past
actions are observable, and hence common knowledge. Each player's payoff is the sum of the
single-period payoffs. Players do not discount future payoffs. a. Consider the following strategy
profile: - Player 1: 11=a and 12={bcifh1=(a,a)otherwise - Player 2: 21=a and
22={bcifh1=(a,a)otherwise Show that this strategy profile is not a SPNE of this repeated game.
b. Find a pure strategy SPNE of this game. c. Suppose the stage game is repeated three times
rather than two. Find all the non-contingent pure strategy SPNE of this game. d. Again, suppose
the stage game is repeated three times rather than two.

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  • 1. 4. Consider the following stage game. Suppose it is repeated two times. Assume that past actions are observable, and hence common knowledge. Each player's payoff is the sum of the single-period payoffs. Players do not discount future payoffs. a. Consider the following strategy profile: - Player 1: 11=a and 12={bcifh1=(a,a)otherwise - Player 2: 21=a and 22={bcifh1=(a,a)otherwise Show that this strategy profile is not a SPNE of this repeated game. b. Find a pure strategy SPNE of this game. c. Suppose the stage game is repeated three times rather than two. Find all the non-contingent pure strategy SPNE of this game. d. Again, suppose the stage game is repeated three times rather than two.