Game theory

Game theory Question!

Consider that two players, with discount factor 0 < δ < 1, play the stage game in each of an infinite number of periods.

  1. Imagine that you have been asked for advice on how to play the game. What would be the intended equilibrium path that you would try to attain? Why did you choose it?
  2. What is your punishment threat and why did you choose it? Is it a credible threat? Explain
  3. What are the no-defection conditions?
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