## 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.

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