Construct a space of conventional strategies ˜_i for each player i = 1, 2 that satisfies Condition (N) in Subsection 11.4.3 and is composed of exactly three strategies.

Consider two agents repeatedly playing a symmetric pure coordination

 

game with payoffs given in Table 11.4.

(a) Construct a space of conventional strategies ˜_for each player = 12 that

satisfies Condition (N) in Subsection 11.4.3 and is composed of exactly

three strategies.

(b) Assume that each player ’s beliefs are uniform on ˜i= 12_= .

Is (CP) satisfied?

(c) Given discount rate δ = 1/2 and the uniform beliefs postulated in (b), determine

some strategy profile consistent with (EPM). Discuss your answer

in view of the conclusions established by Theorem 11.9.

find the cost of your paper

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